The Smarter way to get your business news - Subscribe to BloombergQuint on WhatsApp
South Africa-based Life Healthcare Group Holdings has decided to sell its entire 49.70 percent stake in Max Healthcare to Kohlberg Kravis Roberts & Co LP, for about Rs 2,120 crore.
Life Healthcare Group Holdings is an equal joint venture partner in Max Healthcare Institute Ltd. along with Max India Ltd.
"The consummation of the proposed transaction is subject to fulfillment of various conditions set out in the intimation given by Life Healthcare to the Johannesburg Stock Exchange," Max India said in a regulatory filing. The exit will enable Life Healthcare to focus on its core operations in South Africa, UK, Poland and Western Europe.
"The company (Life Healthcare) will initially utilise the net proceeds (less estimated costs and taxes) from the disposal to settle debt as well as to invest in growth opportunities in the company's core markets," said the filing which also contains the intimation by Life Healthcare to the Johannesburg Stock Exchange. The total consideration for Life Healthcare's stake in Max Healthcare will be settled in cash.
Max Healthcare is one of the leading hospital groups in India. Life Healthcare acquired an initial stake of 26 percent in Max Healthcare in 2012 and subsequently increased its stake to 46.25 percent in 2014. It hiked its stake in the company to 49.7 percent in 2017.
. Read more on Business News by BloombergQuint.