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Private hospital group Life Healthcare says it has sold its 49.7% stake in India's Max Healthcare, after months of negotiating.
According to the company, exiting India would allow Life Healthcare to focus on its core operations in South Africa, the UK, Poland and Western Europe. A purchase deal was concluded with Radiant Life Care Private on December 24, and is subject to approval by India's competition authority.
"In terms of the agreement, Radiant will acquire the 49.7% stake held by Life Healthcare in Max Healthcare Institute Limited for 80 Rupees per share. This is approximately R3.9 billion at hedged exchange rates before costs and taxes," it said.
Radiant is based in India, and the deal is backed by investment firm, KKR.
In 2012, Life Healthcare, which is South Africa’s third-biggest private hospital group, took a 26% stake in one of India’s biggest private hospital chains and eventually increased its shareholding to 49.7%.
“Initially, Life Healthcare will use the funds to settle debt and grow South African complementary and diagnostic services whilst building an integrated local offering," said Life Healthcare CEO Shrey Viranna.
Max contributed an operating loss of R27m to Life’s results for the year to end September 2017.
Viranna said Life's strategy was "evolving away from delivery of acute hospital care in emerging markets towards a much deeper approach to integrated healthcare, leveraging off the diagnostics capability of Alliance Medical Group."
