Life Healthcare to buy stake in India's MHC
Life Healthcare said it would pay about $108 million for a quarter stake in Indian private hospital firm Max Healthcare, giving it a sizeable exposure to the fast-growing market.
Life Healthcare, the country's second-largest private hospital group by market value, has said it wants to expand beyond its core market ofSouth Africa, where it competes with rivals Medi Clinic and Netcare.
The deal will require exchange control approval from the Reserve Bank and may also require regulatory approval
The company said in a statement it plans to buy 26% of Max Healthcare, a unit of Indian conglomerate Max India, for about R850 million in cash.
Max Healthcare is oneIndia's largest private healthcare providers, Life Healthcare said. The deal will require exchange control approval from the Reserve Bank and may also require regulatory approval.
Life Healthcare operates 56 hospitals and maintains more than 7 000 beds inSouth Africa. The company said it was being advised on the deal by Rand Merchant Bank, a unit of FirstRand. Shares of Life Healthcare are up about a third so far this year, outperforming its two main rivals.
Source: SABC.co.za
Date: 12 October 2011