Capital Group, hedge fund Ward Ferry buy Max Healthcare founder’s stake
Photo Credit: VCCircle

Industrialist Analjit Singh and Max Ventures Investment Holdings Pvt. Ltd, part of the promoter group of Max Healthcare Institute Ltd, sold a tad less than half their stake in the hospital chain.

Singh sold the entire 0.64% stake that he held in his personal capacity while Max Ventures sold a 4.5% stake via bulk deals, stock-exchange data showed.

The stake sale will fetch Rs 515.51 crore ($70.17 million at current exchange rates) before accounting for transaction costs and statutory levies, the data showed.

The shares were bought by Hong Kong-based hedge fund Ward Ferry and US asset management firm Capital Group.

Max Ventures held an 11.35% stake in Max Healthcare before today’s transaction.

The stake sale comes three weeks after Max Healthcare’s shares listed on stock exchanges following its demerger from Max India Ltd and merger with KKR-backed Radiant Life Care Pvt. Ltd. 

Singh will use the proceeds to repay debt. Singh-led Max Group had a total debt of over Rs 3,000 crore at the end of 2019.

Shares of Max Healthcare surged 17.44% on the BSE on Friday to close at Rs 131.30 apiece. The stock has touched a high of Rs 133.80 and low of Rs 101.65 in the past 52 weeks.

Max Healthcare is almost 47% owned by KKR and 23.3% by Radiant’s Abhay Soi.

In a multi-tiered deal, PE firm KKR first bought a 49% stake in Radiant Life Care for $200 million (Rs 1,285 crore) in August 2017. It further infused close to Rs 2,200 crore to raise its stake in Radiant to 67% during 2018-19.

In October 2018, Radiant agreed to buy the entire 49.7% stake of South Africa-headquartered Life Healthcare Group Holdings Ltd in Max Healthcare at Rs 80 per share for a total of about $293 million.

Two months later, Radiant decided to merge its healthcare assets into Max Healthcare as part of the deal.

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