NCLT Approves Max India Demerger; Abhay Soi new Chairman and MD Max Healthcare

New Companies Max Healthcare, Max India and Advaita to list by August 2020

New Delhi: Max Healthcare Institute Limited (MHIL) said that National Company Law Tribunal (NCLT) sanctioned the Composite Scheme of Amalgamation and Arrangement (Scheme) involving Max India Limited and Radiant Life Care Private Limited.

The healthcare belongings of Max India and the healthcare business of Radiant Life Care have been merged into Max Healthcare. The company said that allied health and associated activities of Max India have been demerged into a new entity called Advaita Allied Health Services Limited; a wholly-owned subsidiary of Max India.

Max India shall stand dissolved effective today without being wound up and subsequently the equity shares of the MHIL will get listed on both Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE) in due course after completing procedures according to the related regulations. The record date for allotting equity shares of Max Healthcare to Max India shareholders as per the approved share exchange ratio has been set as June 15, 2020,” the statement said.

This will result in Abhay Soi and Kohlberg Kravis Roberts & Co. L.P (KKR) acquiring a significant majority stake in Max Healthcare and ultimately listing of the combined entity at BSE and NSE. Abhay Soi will be the Chairman and Managing Director of MHIL.

Regarding the development, Soi, said, “We are very excited about our future as a combined entity which will augment our size, scale and capabilities to provide best-in-class healthcare services in the country. Going forward, we plan to expand our operations by investing in growth and leveraging an asset light operating approach. Since the announcement of this transaction, MHIL over the last few quarters has implemented a robust business improvement plan, the results of which are visible in the financial performance of MHIL. I believe that several synergies will play out over the next 2 to 3 years, which will enable us to realize significant benefits from our coming together.”

After the transaction, MHIL has become second largest hospital network across India in terms of revenues and one of the top three hospital chains in the country in terms of bed capacity with over 3,500 beds across India.

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 INR 2,136 crore.

The transaction is being completed through the following steps as per the Scheme:

  • Following the demerger, Radiant’s healthcare assets merged into Max Healthcare with simultaneous merger of residual Max India into Max Healthcare.
  • As a result of this merger, shareholders of Max India will receive 99 equity shares of the Merged Entity (MHIL) of face value of INR 10 each for every 100 equity shares of face value of INR 2 each that they hold in Max India as on the relevant record date.
  • Shareholders of Radiant will receive 9,074 equity shares of face value of INR 10 each in Max Healthcare for every 10 equity shares of face value of INR 10 each held in Radiant as on the relevant record date.
  • Post-merger, Max India stands dissolved and MHIL, which is the newly merged entity comprising of combined healthcare assets of Radiant and Max Healthcare, will get listed on both the BSE and the NSE after completing necessary regulatory requirements.
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