KKR to sell up to 26% stake in Max Healthcare for Rs 9,416 cr tomorrow

American private equity major KKR and Co will be selling up to 26 per cent stake in Max Healthcare Institute for Rs 9,416 crore via block deals on Tuesday.

As per terms of the transaction, the shares will be sold at the rate of Rs 350 to Rs 362 a share, a discount of up to 3.3 per cent on its Friday closing. A host of mutual funds, insurance companies and other investors are expected to participate in the offer.

The offer, managed by Jeffries India and Kotak Securities, will mark the exit of KKR from the company. In March this year, Radiant, a KKR affiliate, had sold 10 per cent stake in Max Healthcare Institute for nearly Rs 3,300 crore at the rate of Rs 340 a share. As per the terms, KKR will offer 20 per cent stake in the company to investors and has kept a greenshoe option of another 6 per cent.

KKR and Radiant had bought 49.7 per cent stake in Max Healthcare in 2018 for Rs 2,120 crore. Radiant had acquired the other joint venture partner, South Africa-based hospital operator Life Healthcare, and merged its own assets into Max Healthcare. The entity had more than 3,200 beds in 16 hospitals across India. For the fiscal year ending March this year, the company had earned revenues of Rs 1,729 crore and made a profit of Rs 331 crore.

In September last year, KKR had sold part of its stake for 2,956 crore as part of its exit strategy from the company.