Max India on Monday said the National Company Law Tribunal (NCLT) has approved the composite scheme involving the merger of its healthcare assets into Max Healthcare and the demerger of its residual businesses into Advaita, a wholly owned subsidiary.
The record date for the demerger is June 15. All the shareholders of Max India as on the record date will be allotted the shares of Max Healthcare and Advaita Allied Health Services, which will be renamed as Max India Ltd later.
“Both Max Healthcare and the new Max India are expected to be listed on the Indian stock exchanges in August 2020,” Max India said.
The NCLT approval marks a significant progress for the comprehensive scheme that involved a series of transactions including the demerger of Radiant’s healthcare assets into Max Healthcare. Radiant is a hospital management company promoted by Abhay Soi and backed by KKR.
Shareholders of Max India will receive one share of Advaita for every five shares held by them. The shareholders of Max India will receive 99 equity shares of the merged entity, comprising Radiant and Max Healthcare, of Rs 10 each for every 100 equity shares of Rs 2 each that they hold in Max India.
The combination of Radiant and Max Healthcare is expected to create the second-largest hospital network in India by revenue. The merged entity will operate over 3,500 beds throughout 17 hospitals and medical centres across the country.
The combined business is also expected to provide significant growth potential and compelling business synergies.
“The demerger will enable Max India to focus on the high potential category of seniorcare. The Max Group has had a track record of redefining sectors and in turn creating value for its shareholders,” Max Group founder and Chairman Analjit Singh said.
The demerger of Radiant’s healthcare business into Max Healthcare will result in Soi and KKR acquiring a “significant majority stake” in Max Healthcare. Soi will be the chairman & managing director of Max Healthcare.
Shares of Max India closed at Rs 62.50 per scrip on the BSE, up 0.89 per cent from its previous close.
