Max India Ltd. said today its shareholders approved a composite scheme involving the merger of its healthcare assets with Max Healthcare Ltd. and demerger of its residual businesses with Advaita, its subsidiary.
Radiant Life Care, backed by private equity firm KKR, will then acquire a majority stake in Max Healthcare, the company said in an exchange filing.
Nearly 99.21 percent of its public shareholders voted in favour of the proposed scheme at a meeting convened by the National Company Law Tribunal, Max India said.
“This is a significant progress for the comprehensive scheme that involves a series of transactions, including demerger of Radiant's healthcare assets into Max Healthcare which will result in KKR-backed Radiant acquiring a majority stake in Max Healthcare and listing of the combined Max Healthcare and new ‘Max India' respectively,” the company said.
The merger is expected to be completed by the end of ongoing financial year. The merged entity will operate over 3,200 beds through 16 hospitals across India and will be among the top three by revenue and the fourth-largest by beds, the company said.
Scheme Of Composition
The deal is structured as follows:
- Max India will demerge its non-healthcare businesses into a new wholly-owned subsidiary of Max India whose shares will be listed separately. This new company will be spun off and shareholders of Max India will receive one share for every five shares held in Max India.
- Radiant's healthcare assets will be demerged into Max Healthcare with simultaneous merger of Max India into Max Healthcare. Shareholders of Max India will receive 99 shares of the combined entity for every 100 shares held in Max India.
- After the merger, Max India will get dissolved without being wound up and shares of the merged entity will be listed on the exchanges.
As the immediate next step towards the conclusion of the transaction, the second motion petition for approval of the scheme is expected to be filed with NCLT during the current month, Max India said in a statement.
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