Max Healthcare, which owns a chain of super speciality hospitals in North India, has decided to acquire 51 per cent stake in Saket City Hospital in South Delhi from BK Modi’s Singapore-based Smart Health City Pte Ltd, the company holding this hospital asset.
Max Healthcare, which announced the deal on Wednesday, did not disclose the value of the transaction, saying it was “subject to confirmatory diligence, requisite regulatory approvals and other customary conditions.”
Saket City Hospital, adjacent to Max Super-Speciality Hospital in the area, will be now rebranded as Max Smart Super Speciality Hospital, the company said in a statement.
The BK Modi-owned Saket City Hospital began operations in 2013 and has 230 beds. It plans to expand this to 300 beds.
“Max Healthcare plans to further expand this facility by 900 additional beds, thereby expanding Saket City Hospital’s capacity to 1,200 beds,” the company said, adding that together with Max Super Specialty Hospital, it will now have a footprint of over 2,000 beds in Saket, “making it one of the largest single-location healthcare facilities in India.”
Commenting on the partnership, Rahul Khosla, MD, Max India and Chairman, Max Healthcare, said: “The ability to create a 2,000 bed world class integrated Medicity is a life changing opportunity for Max Healthcare.”
BK Modi, Founder & Chairman, Smart Global Group, said: “The partnership will be transformational for healthcare delivery in North India. Max’s reputation as a premier healthcare provider and the expertise of their international joint venture partner Life Healthcare, South Africa, will act as a catalyst for Smart Health City’s aspirations of creating a world-class healthcare destination.”
Andre Meyer, CEO, Life Healthcare, South Africa, said: “This brownfield expansion will accelerate value creation. Max Healthcare is our first large-scale healthcare platform outside Southern Africa and its continued success has strengthened our commitment to India….”
Multinational consultancy firm EY acted as the advisor to the transaction.
Max Healthcare is an equal joint venture with Life Healthcare, South Africa, with both partners holding 45.94 per cent stake each.