Radiant Life Care In Talks With Max Healthcare, Merger On The Cards

Radiant Life Care is in advanced level of talks with Max Healthcare to acquire its hospital chain in India, Economic Times has reported. The deal is expected to be announced next weekend. Radiant Health Care is backed by KKR group. The combined company is expected to be merged into a holding company.

KKR is expected to have 50 per cent stake in the joint holding company. Analjit Singh of the Max group is expected to be given 15 to 16 per cent share, while Abhay Soi of the Radiant group will get a share of 14 to 15 per cent. The remaining stake will be with the public shareholders of Max India. Max India will be exempted from the mandatory one-year lock-in period, according to sources of Economic Times.

Max group spokesperson declined to comment on media reports. Radiant group’s $293 million investment in Max group earlier in September had increased the latter’s valuation to Rs 4,090 crore. The deal is likely to value Max Healthcare at about Rs 5,500 crore, said the person cited above. The decision regarding the deal will be taken by a board meeting of Max group.