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Last Updated : Jun 21, 2019 08:50 PM IST | Source: Moneycontrol.com

Radiant completes acquisition of Max Healthcare to create India's 3rd largest hospital chain

As part of the transaction, Max India’s promoters have received an advance of Rs 361 crore from KKR in exchange for a 4.99 percent stake in the merged entity.

Viswanath Pilla @viswanath_pilla
Representative image
Representative image

Radiant Life Care, the hospital chain promoted by Abhay Soi and backed by KKR, on June 21 said it has completed the acquisition of a 49.7 percent stake in Max Healthcare from South Africa-based hospital operator Life Healthcare.

Abhay Soi will now lead Max Healthcare as Chairman of its Board and Executive Council.

Radiant’s stake acquisition is one of several steps that will eventually result in Soi and KKR together acquiring a controlling stake in Max Healthcare by combining the health care assets of Max Healthcare, Max India and Radiant. The combined assets would make it the third largest hospital network in India and the largest in North India.

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As part of the transaction, Max India’s promoters have received an advance of Rs 361 crore from KKR in exchange for a 4.99 percent stake in the merged entity.

Max India’s promoters have used the funds for reducing debt. Radiant funded this acquisition with an investment from KKR’s Asian Fund III.

The process of combining Radiant Life Care and Max Healthcare and the eventual listing of Max Healthcare is underway, and is likely to be completed in six to eight months, subject to receipt of the requisite approvals.

“The merger and the future planned expansion will provide the scale that MHC needs for profitable growth at a time when healthcare margins are being tested," said Analjit Singh, Founder and Chairman of Max Group.

“I am happy to have been able to complete the acquisition of Life’s stake in Max Healthcare as a first step towards integration of the two companies, and fortunate to have a PE firm such as KKR backing us in our journey," said Singh.

Abhay Soi, Chairman of Radiant Life Care and Max Healthcare, said,"We believe we have all the wherewithal to grow our business organically and inorganically during this challenging phase for the healthcare sector," Soi said.
First Published on Jun 21, 2019 08:50 pm
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