The multi-business conglomerate is looking at new opportunities | Will exit healthcare and health insurance space
With multiple businesses under its umbrella, Max India is selling its hospitals and health insurance subsidiaries and gearing up to explore fresh avenues.
“Our aim is to recreate the Max India story all over again by seeding high potential businesses and doing them the Max way, which will likely create significant value for those who stay invested with us.” – Analjit Singh, Founder Chairman Emeritus, Max Group
- Analjit Singh-led Max group is in the midst of a 51 per cent stake sale of its health insurance JV Max Bupa to private equity firm True North.
- The transaction, which will take place in the next six months,will result in demerger and subsequent formation of two listed entities.
- Max Healthcare will merge with KKR backed hospital Radiant Life Care will create India’s third largest corporate hospital chain with over 3,200 beds and 16 hospitals.
- The other entity, Advaita will comprise of Max’s Antara Senior Living and will also manage a over Rs 500 crore-plus corpus received from the divestment of Max Bupa.
Analjit Singh, Max Group’s Founder and Chairman is set to venture out into new pastures with Advaita. The new business avenues will be aligned to the group’s current focus areas – real estate, senior care, and lifestyle.
Besides initiating new businesses, new entity is proposed to leverage its financial reserves to offer an opportunity to shareholders unwilling investing in new businesses, to exit through a capital reduction process.
Mohit Talwar, Vice Chairman, Max Group and Managing Director, Max India commented on how Max Group’s business strategies have provided substantial gains for investors.
“Our choice of businesses and smart capital management has resulted in a 23 per cent internal rate of return for Max India investors since we went public. This, even when our stock prices are unusually depressed currently. The business portfolio rebalancing will provide fresh impetus to this growth and returns.”
Announcements on the new businesses will be made in 2020, after the demerger and listing of the new entity, currently being called Advaita Allied Health Services Ltd.
Max group currently owns and manages 49.7 per cent stake in Max Healthcare, 51 per cent stake in Max Bupa Health Insurance and 100 per cent stake in Antara Senior Living.