Radiant Life Care, a leading Indian hospital management company promoted by Abhay Soi and backed by global investment firm KKR, has completed the acquisition of a 49.7 per cent stake in Max Healthcare Institute from South Africa-based hospital operator Life Healthcare. 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 to create the largest hospital network in north India.
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As part of the transaction, Max India’s promoters have received an advance of Rs 361 crore (52.2 million dollars) from KKR in exchange for a 4.99 per cent stake in the merged entity. Max India’s promoters have used the funds for deleveraging purposes.
“Max Healthcare and Radiant possess complementary sets of capabilities in running healthcare establishments and KKR brings with its extensive global experience in healthcare investments and capabilities in prudent financial management,” said Founder and Chairman of Max Group Analjit Singh.
“Radiant-KKR are the best-suited partners to further the culture of clinical and service excellence that Max Healthcare has become known for. The merger and the future planned expansion will provide the scale that Max Healthcare needs for profitable growth at a time when healthcare margins are being tested,” he said in a statement.
Soi, Chairman 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.
Our interests are also very aligned with our Prime Minister’s vision of strengthening brand India globally by focusing on the five T’s of tourism, tradition, technology, trade and talent.” Radiant has two iconic facilities in its portfolio: a 650-bed BLK Super Specialty Hospital in New Delhi and a 350-bed Nanavati Super Specialty Hospital in Mumbai.
Max Healthcare has 14 facilities in north India, offering services in over 30 medical disciplines with a base of over 3,000 doctors, 10,000 employees and over 22 lakh patients from over 80 countries.
(With ANI inputs)
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