NCLT approves demerger; Max Healthcare, new company to list on bourses in August

National Company Law Tribunal (NCLT) has approved the composite scheme of merger and demerger, said Max India in its BSE filing on June 1.

The scheme involves a merger of the healthcare assets of Max India into Max Healthcare and demerger of the residual businesses of Max India into Advaita, a wholly-owned subsidiary of Max India.

"The composite scheme has been declared effective starting June 1, 2020. The record date for the demerger has been set as June 15, 2020," the company said.

All Max India shareholders as on the record date will get shares of Max Healthcare and Advaita Allied Health Services, it added.

Advaita Allied Health Services will be renamed as Max India later.

Both Max Healthcare and the new 'Max India' are expected to be listed on the Indian stock exchanges in August 2020.

"This marks significant progress for the comprehensive scheme that involves a series of transactions including demerger of Radiant's healthcare assets into Max Healthcare. This will result in KKR backed Radiant Healthcare acquiring a majority stake in Max Healthcare and the listing of the combined Max Healthcare and the new 'Max India'," the company said.

Once the completion of the demerger, the combination of Radiant and Max Healthcare will create the second-largest hospital network in India by revenue, the company said.

The merged entity will operate over 3,500 beds throughout 17 hospitals and medical centres across India.

"The demerger will enable Max India to focus on the high potential category of Senior Care," Analjit Singh, Founder & Chairman, Max Group said.

Steps involved in the Scheme:

1>> Prior to the merger transaction involving Radiant and Max Healthcare, Max India demerged its non-healthcare businesses including Antara and Max Skill First into 'Advaita', which will eventually be listed separately on both BSE and National Stock Exchange.

2>> Shareholders of Max India will receive one share of Rs 10 each of Advaita for every five shares of Rs 2 each that they hold in Max India.

3>> Following the demerger and the spin-off, Radiant's healthcare assets merged into Max Healthcare with the simultaneous merger of the residual Max India into Max Healthcare today. As a result of this merger, shareholders of Max India will receive 99 equity shares of the Merged Entity of Rs 10 each for every 100 equity shares of Rs 2 each that they hold in Max India.

4>> Post-merger, Max India stood dissolved effective today without being wound up and subsequently the equity shares of the merged entity and the new Max India (Advaita) will get listed on both BSE and National Stock Exchange.