Max Healthcare emerges as the second-largest healthcare chain by revenue in India
NCLT’s approval for composite scheme of amalgamation and arrangement sets the stage for Max Healthcare’s listing
Max Healthcare Institute Limited (MHIL / Max Healthcare) announced that consequent to the receipt of order of the National Company Law Tribunal (NCLT) sanctioning the Composite Scheme of Amalgamation and Arrangement (Scheme) involving demerger of allied health and associated activities of Max India Limited (Max India) into Advaita Allied Health Services Limited, an amalgamation of the residual Max India (post demerger) and demerger of healthcare business of Radiant Life Care Private Limited (Radiant) into Max Healthcare, the amalgamation and demergers as per the sanctioned scheme have been successfully completed today. Abhay Soi will be the Chairman and Managing Director of MHIL.
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.
This is a significant step in the Scheme entailing demerger of Radiant’s healthcare business into MHIL, which 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.
Commenting on this development, Abhay Soi, Chairman, MHIL, 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. MHIL will emerge as the second-largest hospital chain in India with strongly established brand equity and centres of excellence for high-end quaternary care with significant part of its capacities in key metros, particularly Delhi-NCR and Mumbai.”
He added, “Our operating culture rests on the bedrock of medical and service excellence, high-quality patient experience, ethical practices, and adopting cutting-edge technology. I am confident that we will continue to incrementally contribute to the development of quality healthcare services and meet the growing medical needs of our country.”
Going forward, MHIL plans to expand its 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,” he added.
MHIL will emerge as the 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. MHIL will operate over 3,500 beds across India, including tertiary and quaternary care facilities, offering high-end critical and super specialty care, supported by strong local brands such as BLK Hospital, Max Hospital-Saket, Max Smart Hospital-Saket, Max Hospital – Patparganj, Max-Hospital-Shalimar Bagh, Nanavati Hospital, etc.
Radiant, promoted and founded by Abhay 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. Over the last few quarters, MHIL has implemented various initiatives to grow revenues and rationalise costs, resulting in a healthy financial and operational performance built on the pillars of medical and service excellence.