Life Healthcare sells stake in Max Healthcare

LIFE Healthcare has entered into an agreement with Radiant Life Care to dispose of its 49.7 percent stake in Max Healthcare in India.

The group said yesterday that in terms of the agreement, Radiant will acquire the 49.7 percent stake held by Life Healthcare for 80 rupees a share (R15.77 a share), equalling R3.9 billion at hedged exchange rates before costs and taxes.

Life Healthcare chief executive Dr Shrey Viranna said the groups had entered into a share purchase agreement on December 24 last year and the deal was backed by leading global investment firm KKR.

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds.

“Initially Life Healthcare will use the funds to settle debt and grow South African complementary and diagnostic services while building an integrated local offering,” Viranna said.

He added that internationally, the group would also continue to pursue its aspirations to become a global player with a focus on operational efficiencies in diagnostics and growth in existing markets through selective investments.

The group has informed its shareholders that the implementation of the transaction remains subject to several