WARBURG HIKES
STAKE IN MAX HEALTHCARE TO 23%
Warburg Pincus has raised its stake in Max
Healthcare to 23% in a Rs 115-crore deal. The private equity
investor has picked up 10% additional equity stake at a tag
of Rs 40 per share. With this deal, Warburg's total investment
in Max Healthcare now stands at Rs 140 crore. It had put in
Rs 25 crore early this year to acquire 13% in the company.
Warburg Pincus has raised its stake in Max
Healthcare to 23% in a Rs 115-crore deal. The private equity
investor has picked up 10% additional equity stake at a tag
of Rs 40 per share. Max Healthcare, a subsidiary of Max India,
is engaged in healthcare services with primary care clinics
operating under Dr Max, apart from other hospitals.
The deal involves issue of additional equity
shares cumulating to 28.7 million shares of Rs 10 each at
an issue price of Rs 40 per share. With this deal, Warburg's
total investment in Max Healthcare now stands at Rs 140 crore.
It had put in Rs 25 crore earlier this year to acquire 13%
stake in the company at Rs 13.25 per share.
After this deal, the parent company holds
70% in Max Healthcare. “With the current round of fund infusion
into Max Healthcare the company has now fully tied up its
long-term funding needs for the Rs 600-crore healthcare project,”
said B Anantharaman, joint managing director at Max India.
He added that Max Healthcare, which started
operations in January 2001, is targeting a revenue of Rs 147
crore this fiscal and expects to break even in the next 18-24
months. Max India also announced that Warburg Pincus has completed
its balance investment of Rs 119 crore in the parent company
taking its total investment to Rs 200 crore, representing
28.7% stake of Max India Ltd.
Max to sell off Hutch stake
Max India said it would completely exit the
telecom business by divesting its meagre stake of about 2%
in cellular operator Hutchison India to raise funds for its
healthcare and insurance services.
"We are planning to divest our 1.8% stake
in Hutchison India to take care of the financial needs of
the company. We are waiting for an opportune moment,"
Max India joint MD B Anatharaman said.
