A significant portion of the proceeds from this transaction will be utilised by Max India to acquire a 3.75 per cent stake in its flagship business Max Healthcare from International Finance Corporation
The sponsors’ shareholding in the Company will increase to 45.12 per cent as a result of this transaction.
Max India will raise funds from its sponsor, Analjit Singh, Founder and, Chairman Emeritus, Max group, by issuing warrants amounting to Rs 300 crore at Rs 154.76 per share of Max India, priced in accordance with SEBI guidelines. The total number of warrants issued will be 1,93,84,854 which translates to approx. four per cent stake in the company for the sponsors.
A significant portion of the proceeds from this transaction will be utilised by Max India to acquire a 3.75 per cent stake in its flagship business Max Healthcare (MHC) from International Finance Corporation (IFC), which owns a 7.5 per cent stake in the latter company. IFC’s balance 3.75 per cent stake in MHC will be acquired by Max India’s joint venture partner in MHC – the Life Healthcare Group, which is South Africa’s second largest hospital chain. The total consideration for the stake acquisition will be Rs 423 crore, translating to Rs 105 per share of MHC.
IFC has been a long-standing investor in MHC, who acquired stakes in multiple tranches over a period of ten years. Post acquisition, both JV partners’ stake in MHC will increase to 49.7 per cent each.
Rahul Khosla, President, Max Group; Chairman, Max India and Chairman, Max Healthcare, said, “Max India’s stake increase in Max Healthcare reflects our confidence in the company’s potential. We remain committed to providing the capital the business needs to continue on its growth trajectory. Max Healthcare’s key specialities, including Neurosciences, oncology, cardiac and renal sciences continue to report strong growth, and we are excited about the growth potential from our new growth initiatives, such as Oncology Day Care, Digicare and Max Labs.”