INSUBCONTINENT EXCLUSIVE:
Max India shares closed 3.95 per cent lower at Rs 80.30.Healthcare firm Max India said on Monday it would sell a majority stake in its
hospital-operating joint venture to KKR-backed Radiant Life Care Pvt Ltd, resulting in a listed company worth Rs 7,242 crore ($1.03 billion)
In a so-called reverse merger, Radiant will buy out the other JV partner, South Africa-based hospital operator Life Healthcare, and merge
its own assets into Max Healthcare
This entity will list itself and offer more than 3,200 beds in 16 hospitals across India, Max India said in a statement.The deal is expected
to give Radiant a firmer grip on the private healthcare market in India, where spending is on the rise as Prime Minister Narendra Modi looks
to implement a healthcare programme aimed at providing insurance cover to hundreds of millions of people.Radiant's promoter Abhay Soi will
own 23.2 per cent of the combined entity and will be its chairman, while KKR will hold 51.9 per cent.The rest of Max India's non-healthcare
businesses will be spun out to the company's shareholders and listed.Earlier this year, Malaysia's IHH Healthcare Bhd won an extended
bidding war to take over cash-strapped Fortis Healthcare Ltd, though the open offer has now been held up due to a court ruling.Max India
shares closed 3.95 per cent lower at Rs 80.30.
