This story first appeared in DNA Money edition on Saturday, June 18, 2011.
Warburg Pincus, the private equity giant, is exiting Max Healthcare Institute Ltd by selling remaining 16.37% stake in the healthcare services provider. A subsidiary of the publicly listed Max India Ltd promoted by Analjit Singh, Max Healthcare operates eight facilities in New Delhi and the National Capital Region and offers services in more than 30 medical disciplines.
Max India, in a notification to the Bombay Stock Exchange, said its board has approved the acquisition 4.76 crore shares of ¤10 each of Max Healthcare, constituting the entire shareholding of Warburg Pincus. The shares will be bought at an acquisition price of Rs29.40 a share for an overall consideration of Rs140 crore. The process is expected to be completed no later than December 15, 2011, after receipt of all regulatory approvals, the company said.
With this acquisition, Max India’s equity shareholding in Max Healthcare would stand increased to 91.84%. Warburg Pincus’ India office refused to comment. A Max India spokesperson said no additional information is being shared at this stage.
Warburg first invested in Max Healthcare in December 2004 when a preferential allotment was made to Madison Holding Ltd and Melany Holdings Ltd — both registered foreign institutional investors (FIIs) belonging to the Warburg Pincus group.Turn to
The allotment represented a 13.8% stake in the equity base of Max Healthcare. The investment, worth Rs 25 crore at that time, got Warburg 1.88 crore equity shares of Rs 10 each at an issue price of Rs 13.25 per share.
In June 2005, the Warburg made a follow-on investment, buying another 2.87 crore shares for Rs 115 crore at Rs 40 per share.
Max India held 70% stake in the fully diluted equity base of Max Healthcare and Warburg’s total investment in the company then stood at Rs 140 crore with a 23% stake.
That would mean Warburg sold the difference - or around 6.63% stake - some time earlier, because it’s exiting the company by selling 16.37% stake. So the price at which that 6.63% stake was sold would be the profit for Warburg since it had invested Rs 140 crore for a 23% stake and sold 16.37% stake for Rs 140 crore too.
Warburg Pincus, the private equity giant, is exiting Max Healthcare Institute Ltd by selling remaining 16.37% stake in the healthcare services provider. A subsidiary of the publicly listed Max India Ltd promoted by Analjit Singh, Max Healthcare operates eight facilities in New Delhi and the National Capital Region and offers services in more than 30 medical disciplines.
Max India, in a notification to the Bombay Stock Exchange, said its board has approved the acquisition 4.76 crore shares of ¤10 each of Max Healthcare, constituting the entire shareholding of Warburg Pincus. The shares will be bought at an acquisition price of Rs29.40 a share for an overall consideration of Rs140 crore. The process is expected to be completed no later than December 15, 2011, after receipt of all regulatory approvals, the company said.
With this acquisition, Max India’s equity shareholding in Max Healthcare would stand increased to 91.84%. Warburg Pincus’ India office refused to comment. A Max India spokesperson said no additional information is being shared at this stage.
Warburg first invested in Max Healthcare in December 2004 when a preferential allotment was made to Madison Holding Ltd and Melany Holdings Ltd — both registered foreign institutional investors (FIIs) belonging to the Warburg Pincus group.Turn to
The allotment represented a 13.8% stake in the equity base of Max Healthcare. The investment, worth Rs 25 crore at that time, got Warburg 1.88 crore equity shares of Rs 10 each at an issue price of Rs 13.25 per share.
In June 2005, the Warburg made a follow-on investment, buying another 2.87 crore shares for Rs 115 crore at Rs 40 per share.
Max India held 70% stake in the fully diluted equity base of Max Healthcare and Warburg’s total investment in the company then stood at Rs 140 crore with a 23% stake.
That would mean Warburg sold the difference - or around 6.63% stake - some time earlier, because it’s exiting the company by selling 16.37% stake. So the price at which that 6.63% stake was sold would be the profit for Warburg since it had invested Rs 140 crore for a 23% stake and sold 16.37% stake for Rs 140 crore too.
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