South Africa's Life Healthcare to dispose its investment in India's Max Healthcare
The investment equates to R3.9?billion at hedged exchange rates before costs and taxes.
South Africa-headquartered hospital group Life Healthcare has entered into an agreement with Radiant Life Care to dispose of its 49.7?percent stake in Max Healthcare in India, according to a media report by IOL.
In terms of the agreement, Radiant will acquire the 49.7?percent stake held by Life Healthcare for 80 rupees a share (R15.77 a share), equalling R3.9?billion at hedged exchange rates before costs and taxes.
Life Healthcare chief executive Dr Shrey Viranna told IOL that the groups had entered into a share purchase agreement on December 24 last year and the deal was backed by leading global investment firm KKR.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds.
Life Healthcare, which operates in South Africa and has a hospital in Botswana, said it will use the proceeds of the disposal to settle debt and grow South African complementary and diagnostic services.
Life Healthcare has informed its shareholders that the implementation of the transaction remains subject to several conditions, including the approval of the competition authority in India.