Max India sets record date as June 15 after NCLT approves demerger
Jun 01, 2020
New Delhi [India], June 1 : Max India Ltd, a listed entity of the three billion dollar Max Group, said on Monday that the National Company Law Tribunal (NCLT) has approved the composite scheme involving the merger of the healthcare assets of Max India into Max Healthcare and demerger of the residual businesses of Max India into Advaita, a wholly-owned subsidiary of Max India.
The composite scheme has been declared effective starting June 1. The record date for the demerger has been set as June 15. All Max India shareholders as on the record date will be allotted shares of Max Healthcare and Advaita Allied Health Services which will be renamed as Max India Ltd later.
Both Max Healthcare and the new 'Max India' are expected to be listed on Indian stock exchanges in August. This marks significant progress for the comprehensive scheme that involves a series of transactions including demerger of Radiant's healthcare assets into Max Healthcare.
This will result in KKR-backed Radiant Healthcare acquiring a majority stake in Max Healthcare and the listing of the combined Max Healthcare and the new 'Max India.' As announced earlier, the combination of Radiant and Max Healthcare will create the second-largest hospital network in India by revenue.
The merged entity will operate over 3,500 beds throughout 17 hospitals and medical centres across India, including tertiary and quaternary care facilities offering high end critical and super speciality care supported by strong local brands such as BLK Hospital, Max Saket Hospital, Max Smart Hospital, Max Patparganj Hospital, and Nanavati Hospital.
The company said the combined business is expected to provide significant growth potential and compelling business synergies. By delivering best-in-class patient care, the combined business plans to address India's growing demand for quality medical treatment.
The merged entity will continue to use the current brand name Max Healthcare with appropriate adjustments to its logo. The new 'Max India' will be a holding company of two businesses -- Max Group's Senior Care business 'Antara' and a skilling company Max Skill First.
Antara recently launched its second senior living community in the NCR region on Noida Expressway and is also set to launch assisted living businesses in NCR.
"The demerger will enable Max India to focus on the high potential category of senior care," said Founder and Chairman of Max Group Analjit Singh. "The combined healthcare assets will provide the scale needed for profitable growth," he said in a statement.
Mohit Talwar, Vice Chairman of Max Group and Managing Director of Max India, said the separate listing of Max Healthcare as a result of this demerger will reflect the true intrinsic value of the asset. "It will also allow us at the Max Group to focus on the growth of Antara, the senior care subsidiary of the new Max India," he said.
