New Delhi, June 1: 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), Mint reported.
“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.
After the merger, MHIL will operate over 3,500 beds across India, including tertiary and quaternary care facilities such as Nanavati Hospital in Mumbai and BLK Hospital, Max Hospital Saket, Max Smart Speciality Hospital Saket, Max Hospital Patparganj, Max Hospital Shalimar Bagh in Delhi.
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.
Following the demerger and spin-off, today, Radiant Life Care’s healthcare assets, which included the Nanavati Hospital in Mumbai and BLK Hospital in Delhi, were merged into Max Healthcare.
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.
Advaita Allied Health Services is a wholly-owned subsidiary of Max India Ltd.
“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.