News & Events

The Firm is representing KKR in connection with the acquisition by its portfolio company, Radiant Life Care Private Limited, of a majority stake in Max Healthcare Institute Limited from Max India Limited.

The acquisition will be undertaken through a series of transactions, including (i) Max India spinning-off its non-healthcare businesses into a new wholly owned subsidiary, the shares of which will be listed separately on both the Bombay Stock Exchange and the National Stock Exchange of India, (ii) Radiant purchasing a 49.7% stake in Max Healthcare from South Africa-based hospital operator Life Healthcare in an all cash deal, (iii) Radiant demerging its healthcare assets into Max Healthcare and (iv) Max Healthcare undertaking a reverse merger with Max India, resulting in Max India being dissolved and the equity shares of the merged entity being listed on both the Bombay Stock Exchange and the National Stock Exchange of India. In addition, following completion of the reverse merger, KKR will acquire an additional stake of 4.99% in the merged entity from the promoters of Max India. As a result of these transactions, KKR, the promoter of Radiant and the promoters of Max India are expected to hold 51.9%, 23.2% and 7%, respectively, of the merged entity, with the balance being held by public and other shareholders. The merged entity would have an equity valuation of INR 7,242 crore (~US$1 billion).

The combination of Radiant and Max Healthcare will create the largest hospital network in North India, which will become among the top three hospital networks in India by revenue and the fourth largest in India in terms of operating beds. The merged entity will operate over 3,200 beds throughout 16 hospitals across India, including tertiary and quaternary care facilities offering high end critical and super-specialty care. The merged entity will continue to use the current brand name, Max Healthcare. The transaction is subject to regulatory approvals and other customary closing conditions.

The Simpson Thacher team for the transaction includes Ian Ho and Matthew Leung (M&A); Jacqueline Clinton and Joseph Tootle (Tax); and Marcela Robledo (Intellectual Property).