Max Healthcare completes merger of Radiant Life's hospital assets with self
- IBEF
- June 2, 2020
Max India Ltd has completed spinning off its hospital operations under Max Healthcare and the subsequent merger of Radiant Life Care Pvt Ltd with it. This process followed the National Company Law Tribunal’s (NCLT) approval for the composite merger scheme.
Mr Abhay Soi, the promoter of Radiant Life Care, will hold the position of chairman and managing director of the merged entity, called Max Health Institute Ltd (MHIL).
“MHIL will emerge as the second-largest hospital chain in India (in terms of revenue) with strongly established brand equity and centres of excellence for high-end quaternary care with significant part of its capacities in key metros, particularly Delhi-NCR and Mumbai," said Mr Soi.
MHIL will now operate over 3,500 beds across India, including tertiary and quaternary care facilities such as Nanavati Hospital in Mumbai and BLK Hospital, Max Hospital Saket, Max Smart Speciality Hospital Saket, Max Hospital Patparganj, Max Hospital Shalimar Bagh in Delhi.
This was part of the Max Group’s overall plan to merge its hospital operations with KKR-backed Radiant Life Care, which was announced in December 2018.
In June 2019, Radiant, which was promoted and founded by Mr Soi and backed by KKR, had acquired a 49.7 per cent stake in Max Healthcare for a consideration of about Rs 2,136 crore (US$ 303.02 million). With this merger, Radiant will be majority stake in Max Healthcare.
Under this agreement, first Max India’s hospital operations under Max Healthcare Ltd were kept off, while the residual non-healthcare businesses including Antara and Max Skill First spun-off through Advaita, which will be later renamed Max India.
Thus, following the demerger and spin-off, Radiant Life Care’s healthcare assets, consisting of the Nanavati Hospital in Mumbai and BLK Hospital in Delhi, were merged into Max Healthcare.
As an outcome of this merger, shareholders of Max India will receive 99 equity shares of the merged Max India-Radiant Life Care for every 100 equity shares of that they hold in Max India, while they will also get one share of Advaita for five shares of Max India.
The date set by Max India for the merger process on June 15, 2020.
On this day, all Max India shareholders will be allotted shares of Max Healthcare and Advaita Allied Health Services, which will be renamed as Max India Ltd later. In August 2020, both Max Healthcare and the new ‘Max India’ are expected to be listed on the Indian stock exchanges.
Advaita Allied Health Services is a wholly owned subsidiary of Max India Ltd.
“The demerger will enable Max India to focus on the high potential category of senior care... I also wish the Max Healthcare team the best. They have committed sponsors in Radiant-KKR and the combined healthcare assets will provide the scale needed for profitable growth," said Max Group founder chairman, Mr Analjit Singh.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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