“Since Life Healthcare’s initial 26 per cent shareholding in Max Healthcare Institute in 2011, valued at approximately 830 million rand, the joint venture has evolved into a strong partnership with mutual consultations on key decisions such as business plans, talent and performance management,” Life Healthcare group CEO André Meyer said in a statement.
[DATA LHC:Life Healthcare] is a South African private hospital operator that also specialises in the operation of rehabilitation, frail care and mental health units.
The acquisition now boosts Life Healthcare’s stake in Max Healthcare Institute (MHC) to 46.4 per cent. The expected date for the conclusion of the transaction is 31 August this year, and will be subject to the approval of the South African Reserve Bank and any other regulatory approval required.
“As Max Healthcare Institute prepares itself for further expansion opportunities, this is an opportune time to further cement the partnership by equalising the shareholding, as anticipated in the original joint venture agreement,” Meyer explained.
(READ MORE: Life Healthcare’s hospitals see rise in revenue)
Max Healthcare Institute Limited is a healthcare group based in India with a wide hospital network that provides services for over 20 medical specialities.
The current transaction is valued at approximately 1.3 million rand at 11.91 rand per share, and will equalise the shareholding of both joint venture partners.
“We’ll be sharing our expertise in hospital administration with the Indian business and importing knowledge on additional best practices and medical advances to our hospitals back home,” said Meyer.