Life Healthcare looks to exit Max Healthcare, Radiant Life Care in race to buy

South Africa-based Life Healthcare Group Holdings is looking to sell its 49.7 percent stake in Max Healthcare, Bloomberg reported on Tuesday citing people in the know of the development.

The report said the Johannesburg-based company is working with Barclays to explore potential interest in its holding in Max Healthcare, one of India’s largest private hospital chains.

Life Healthcare is expecting around USD 406 million for its stake.

Launched in 2000, Max Healthcare is an equal JV partnership between Max India and Life Healthcare, South Africa with each of them owning a 49.7 percent stake. Max Healthcare is focused on tertiary and quaternary care, with revenues of Rs 2,567 crore from over 2,500 beds across 14 hospitals.

Analjit Singh and his family own 40.97 percent of the listed Max India, which has other subsidiaries including Max Bupa, which is healthcare insurance joint venture, and Antara, a senior-living platform.

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The Economic Times reported on Tuesday that global PE firm KKR-backed Radiant Life Care is in the race to acquire the South African company’s stake in Max Healthcare.

Led by Abhay Soi, Radiant is into the business of developing and redeveloping hospitals to provide high-end quaternary care. Currently, the company has two iconic facilities in its portfolio that include BLK Super Specialty Hospital, Delhi and Nanavati Super Specialty Hospital, Mumbai.

Brilliant forayed into medicinal services in 2010 with the re-improvement and dispatching of BLK, a 650-bed healing facility and one of the biggest private part doctor’s facilities in Delhi and NCR. BLK is currently being ventured into a 1600-bed quaternary care doctor’s facility.

Other than this lead doctor’s facility, Radiant worked together with the Nanavati Hospital Trust in 2014 to assume control over the operations of Nanavati, a 350-bed multi-strength doctor’s facility. Throughout the following four years, Radiant intends to change Nanavati into a 1000 bed best in class quaternary care organization.

Moneycontrol emails seeking comments from Max India and Radiant Life Care did not elicit a response at the time of publishing the story. The story will be updated as and when we get the responses.

Large private hospital chains who have seen rapid expansion in India are increasingly facing regulatory scrutiny, as Centre and state governments try to rein in costs of healthcare, which fall on patients’ pockets as of now. The government move to cap prices of coronary stents has profit hit margins of hospitals.

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