To fund acquisition of 3.75% stake in Max Healthcare
Max India announced that it will raise funds from its Sponsor, Max Group's Founder and Chairman Emeritus Analjit Singh, by issuing warrants amounting to Rs. 300 crore at Rs. 154.76 per share of Max India, priced in accordance with SEBI guidelines. The total number of warrants issued will be 1,93,84,854 which translates to approx. 4% stake in the company for the Sponsors.The Sponsors' shareholding in the Company will increase to 45.12% as a result of this transaction.
A significant portion of the proceeds from this transaction will be utilized by Max India to acquire a 3.75% stake in its flagship business Max Healthcare (MHC) from International Finance Corporation (IFC), which owns a 7.5% stake in the latter company. IFC's balance 3.75% stake in MHC will be acquired by Max India's joint venture partner in MHC - the Life Healthcare Group, which is South Africa's second largest hospital chain. The total consideration for the stake acquisition will be Rs. 423 crore, translating to Rs. 105 per share of MHC.
IFC has been a long-standing investor in MHC, who acquired stakes in multiple tranches over a period of 10 years. Post acquisition, both JV partners' stake in MHC will increase to 49.7% each.
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