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Life Healthcare to invest up to $132 mln in Max Healthcare to raise stake

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Reuters MUMBAI
Last Updated : Jul 22 2014 | 8:03 PM IST

MUMBAI (Reuters) - South African hospital operator Life Healthcare Group Holdings Ltd will invest up to 7.9 billion rupees ($132 million) to raise its stake in an Indian hospital chain, the venture's India partner Max India Ltd said on Tuesday.

After the deal, Life Healthcare and Max India will have an equal stake in Max Healthcare, in which the South African company now owns a 26 percent stake.

IFC, an arm of the World Bank, owns 7.5 percent of Max Healthcare and has an option to either retain that or dilute it to 5.4 percent, Max India said. Life Healthcare's actual investment would depend on IFC's decision on its stake, it said.

Life Healthcare will invest up to 3.97 billion rupees in Max Healthcare by subscribing to new shares. It will also buy up to 13.30 percent stake in Max Healthcare from Max India, according to a filing by Max India.

($1 = 60.1050 rupees)

(Reporting by Devidutta Tripathy; Editing by Sumeet Chatterjee)

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First Published: Jul 22 2014 | 7:40 PM IST

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