India: Max Healthcare completes merger with Radiant Life’s hospital assets

Photo: Reuters

Max India Ltd on Monday said it has completed spinning off its hospital operations under Max Healthcare and the subsequent merger of Radiant Life Care Pvt Ltd with it. The process followed the National Company Law Tribunal’s (NCLT) approval for the composite merger scheme.

Abhay Soi, who was the promoter of Radiant Life Care, will be the 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,” Soi was quoted as saying in a release.

The process 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.

Radiant, promoted and founded by Soi and backed by KKR, had acquired a 49.7% stake in Max Healthcare in June 2019 for a consideration of around 2,136 crore. After the merger, Radiant will be majority stake in Max Healthcare.

Under the plan, first Max India’s hospital operations under Max Healthcare Ltd were hived off, while the residual non-healthcare businesses including Antara and Max Skill First spun-off through Advaita, which will be later renamed Max India.

As a result 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.

Max India has set 15 June has been set as the record date for the merger process.

All Max India shareholders as on the record date will be allotted shares of Max Healthcare and Advaita Allied Health Services, which will be renamed as Max India Ltd later. Both Max Healthcare and the new ‘Max India’ are expected to be listed on the Indian stock exchanges in August 2020, Max India said in a filing with exchanges.

“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,” Max Group founder chairman Analjit Singh was quoted as saying in the filing.

This article was first published on livemint.com.

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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