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, which acquired stakes in multiple tranches over a period of 10 years. After acquisition, both joint-venture partners’ stake in MHC will increase to 49.7 per cent each.
Rahul Khosla, president, Max group, 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.”
Commenting on the Sponsors’ stake increase, Mohit Talwar, managing director, Max India said, “The increase in the Sponsors’ shareholding represents their unyielding commitment to the company, and more specifically, their confidence in the immense growth prospects of the underlying healthcare, health insurance and senior living businesses. IFC has been a critical supporter through MHC’s journey over the past decade and we hope to partner with them again soon.”
Andre Meyer, CEO, Life Healthcare said, “The increase in shareholding reflects Life Healthcare’s continued commitment to the Indian healthcare market and a furthering of the partnership with Max India.”
Max Healthcare, Max India’s flagship operating company, reported 23% growth in Gross Revenues to Rs 1,939 crore in first 9 months, while its EBITDA grew 34 per cent to Rs 203 crore over the corresponding period last year. During 9M FY2017, a significant proportion of revenue contributions came from MHC’s major specialities.