South African Life Healthcare Group to exit Max Healthcare for Rs 2,120cr

South Africa-based Life Healthcare Group Holdings has decided to sell its entire 49.70 percent stake in Max Healthcare to Kohlberg Kravis Roberts & Co LP, for about Rs 2,120 crore, Max India said Wednesday.

Life Healthcare Group Holdings is an equal joint venture partner in Max Healthcare Institute Limited along with Max India.

"The consummation of the proposed transaction is subject to fulfillment of various conditions set out in the intimation given by Life Healthcare to the Johannesburg Stock Exchange," Max India said in a regulatory filing.

Exit from Max Healthcare will enable Life Healthcare to focus on its core operations in South Africa, the UK, Poland, and Western Europe.

"The company (Life Healthcare) will initially utilize the net proceeds (less estimated costs and taxes) from the disposal to settle debt as well as to invest in growth opportunities in the company's core markets," said the filing which also contains the intimation by Life Healthcare to the Johannesburg Stock Exchange.

The total consideration for Life Healthcare's stake in Max Healthcare will be settled in cash.

Max Healthcare is a leading hospital group in India.

Life Healthcare acquired an initial stake of 26 percent in Max Healthcare in 2012 and subsequently increased its stake to 46.25 percent in 2014.

Following the acquisition of half of the International Finance Corporation's interest in 2017, Life Healthcare increased its stake in Max Healthcare to 49.7 percent.

The deal is expected to finalized by December 2018.