Healtcare firm Max India today said it has entered into a deal to sell 26 per cent stake in a subsidiary,Max Healthcare Institute,for Rs 516.5 crore to a South African company. Max India,promoted by Analjit Singh family,said in a regulatory filing that it has entered into a non-binding term sheet with South Africa-based Life Healthcare Group "to issue and allot" shares constituting 26 per cent stake of Max Healthcare Institute for Rs 516.5 crore. Max India holds 91 per cent stake in Max Healthcare Institute Ltd. It could not be ascertained that who holds the remaining 9 per cent stake currently. Life Healthcare Group is a leading healthcare service provider in South Africa with a market capitalisation of over USD 2 billion. Its network includes 63 hospitals with over 8,000 beds and a 27 per cent market share in healthcare industry in South Africa. Max India further said that the transaction is subject to completion of due diligence and necessary regulatory approvals in South Africa. "The Board of Directors of the company (Max India) in its meeting held on October 11,2011,accorded its in-principle approval to Max Healthcare Institute to go-ahead on aforesaid transaction," it added. Max India shares today fell 0.4 per cent to close at Rs 177.90 at the BSE in a flat market,where the benchmark Sensex closed 0.13 per cent down.
