LIFEHC:  2,470   -27 (-1.08%)  21/02/2020 00:00

Life Healthcare to sell stake in Indian JV for $293 million

(Adds details)

JOHANNESBURG, Sept 19 (Reuters) - South African private hospital group Life Healthcare said on Wednesday it will sell its entire 49.7 percent stake in India's Max Healthcare to a global investment firm for 4.3 billion rand ($293 million), in order to focus on its operations elsewhere.

"The Company will initially use the net disposal proceeds to settle debt as well as to invest in growth opportunities in its core markets," the group said in a statement.

Shares in Life Healthcare jumped as much as 8.42 percent to 26.90 rand.

Investment firm KKR, through its portfolio company Radiant Life Care Private Limited, will buy more than 266 million shares in Max Healthcare at 80 rupees per share.

The deal is expected to be finalised before the end of the year.

Max Healthcare is a leading hospital group in India, operating hospitals in New Delhi, Punjab and Uttarakhand. ($1 = 14.6676 rand) (Reporting by Nqobile Dludla Editing by James Macharia and Kirsten Donovan)

2018-09-19 17:06:43

© 2020 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.