Global private equity major KKR on Tuesday sold its entire 27% stake in Indian hospital chain Max Healthcare through its affiliate Kayak Investments Holding, in one of the largest bulk deals in recent months.
KKR, which had bought the shares in December 2018 at Rs 80 apiece, sold them at an average price of Rs 353 a share, raising over $1 billion (Rs 9,000 crore). Radiant Life Care, a hospital management company backed by KKR, had acquired a 49.7% stake in Max Healthcare from South Africa-based hospital operator Life Healthcare in 2018. Simultaneously, Radiant’s healthcare assets were merged into Max Healthcare, resulting in KKR and Radiant promoter Abhay Soi acquiring a majority stake in the hospital.
The Government of Singapore and Monetary Authority of Singapore, which owned a 1.13% stake in the company, bought 62.5 million shares worth Rs 2,206 crore on Tuesday. US-based Capital Group acquired 91.9 million shares worth Rs. 3,245 crore. Capital Group currently owns a 3.72% stake in Max Healthcare.
KKR has been divesting its stake in Max Healthcare over the past year. Its stake in the company dropped to 27.54% stake at the end of June 2022 from 47.24% stake at the end of June 2021.
Gaurav Trehan, partner and head of KKR India, said: “It has been a pleasure to have worked with Abhay and the dedicated team at Max Healthcare over these past five years to meaningfully invest in the company’s growth, innovation and offerings on behalf of patients across India who rely on Max’s critical care and services.”
According to media reports, this is one of the largest bulk deals to have happened in recent months.
KKR has invested over $10 billion in assets across India, including a $1.5-billion investment in Reliance Jio and a $755-million bet in Reliance Retail.