Life Healthcare said to weigh sale of Max Healthcare stake

Life Healthcare Group s working with Barclays to explore potential interest in its holding in Max Healthcare

George Smith Alexander, Ari Altstedter, Janice Kew
Updated9 Jan 2018, 12:44 AM IST
Life Healthcare has invested a total of 2.9 billion rand in Max Healthcare, according to the South African firm’s annual report released in December. The Indian company has a network of 14 hospitals, spread mostly across the northern part of the country.
Life Healthcare has invested a total of 2.9 billion rand in Max Healthcare, according to the South African firm’s annual report released in December. The Indian company has a network of 14 hospitals, spread mostly across the northern part of the country.

Mumbai/Johannesburg: Life Healthcare Group Holdings Ltd, the second-largest private hospital owner in South Africa, is considering a sale of its stake in India’s Max Healthcare Ltd, people with knowledge of the matter said.

The Johannesburg-based company is working with Barclays Plc to explore potential interest in its holding in Max Healthcare, which is one of India’s largest private hospital chains, the people said. Life Healthcare and Mumbai-listed Max India Ltd each own 49.7% of the Indian firm, company filings show. Life Healthcare could seek about 5 billion rand ($406 million) for its stake, one of the people said, asking not to be identified because the information is private.

The stake has drawn initial interest from private equity firms, the people said. Deliberations are at an early stage, and Life Healthcare could decide to remain invested in the company, according to the people.

India has one of the most underfunded public health-care systems among the world’s major economies, which has left as much as 70% of patients in private care. At the same time, political pressure to lower costs has hit hospital profits over the past year as the government imposed price controls on coronary stents and knee implants.

Shares of Life Healthcare have fallen 15% in Johannesburg trading over the past year, giving the company a market value of about $3.1 billion. Representatives for Life Healthcare and Max India didn’t immediately respond to requests for comment. A representative for Barclays declined to comment.

Life Healthcare has invested a total of 2.9 billion rand in Max Healthcare, according to the South African firm’s annual report released in December. The Indian company has a network of 14 hospitals, spread mostly across the northern part of the country.

Max Healthcare’s earnings before interest, taxes, depreciation and amortization fell 5% to Rs133 crore ($21 million) in the first half of the current financial year. Revenue for the six months ended 30 September rose 9% to Rs1,410 crore, impacted by regulations and other temporary issues, according to a filing. Bloomberg

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.

MoreLess
First Published:9 Jan 2018, 12:44 AM IST
Business NewsCompaniesLife Healthcare said to weigh sale of Max Healthcare stake

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    152.30
    03:58 PM | 5 NOV 2024
    5.35 (3.64%)

    Bharat Electronics share price

    286.15
    03:59 PM | 5 NOV 2024
    2.1 (0.74%)

    Bank Of Baroda share price

    257.80
    03:59 PM | 5 NOV 2024
    5.05 (2%)

    State Bank Of India share price

    849.20
    03:59 PM | 5 NOV 2024
    19.35 (2.33%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Rainbow Childrens Medicare share price

    1,548.10
    03:58 PM | 5 NOV 2024
    -82.6 (-5.07%)

    Torrent Power share price

    1,708.00
    03:29 PM | 5 NOV 2024
    -88.75 (-4.94%)

    PB Fintech share price

    1,640.20
    03:57 PM | 5 NOV 2024
    -72.55 (-4.24%)

    Tube Investments Of India share price

    4,180.70
    03:58 PM | 5 NOV 2024
    -179.4 (-4.11%)
    More from Top Losers

    HFCL share price

    127.85
    03:47 PM | 5 NOV 2024
    8.5 (7.12%)

    Jindal Saw share price

    326.10
    03:29 PM | 5 NOV 2024
    16.15 (5.21%)

    Adani Energy Solutions share price

    1,014.65
    03:54 PM | 5 NOV 2024
    49.25 (5.1%)

    Oil India share price

    495.45
    03:54 PM | 5 NOV 2024
    23 (4.87%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,255.000.00
      Chennai
      80,261.000.00
      Delhi
      80,413.000.00
      Kolkata
      80,265.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Companies

        HomeMarketsloanPremiumMint Shorts