Bain, Radiant eye stake in Max Healthcare; PE firms mull buying into Ess Kay

Bain Capital and KKR-backed Radiant Life Care are in separate talks to buy South Africa-headquartered Life Healthcare Group Holdings' 47.5% stake in homegrown hospital network Max Healthcare Ltd, The Economic Times reported, citing two people aware of the development.

The deal is valued at $450-540 million, the report added.

Launched in 2000, Max Healthcare is an equal joint venture between Max India Ltd and Life Healthcare Group Holdings Ltd. It provides healthcare services focused on tertiary and quaternary care through a network of 14 hospitals.

Investment bank Barclays is advising Life Healthcare on the stake sale.

In another development, Carlyle, Warburg Pincus, Goldman Sachs and Morgan Stanley PE are among the private equity firms looking to pick up a significant minority stake in Jaipur-based non-banking financial company Ess Kay Fincorp Ltd, The Economic Times reported, citing two people aware of the development.

The firms are looking to acquire the stake for $60-70 million, the report added.

Private equity firms Creador and ChrysCapital are also interested in buying stake in the company, according to the report.
Investment bank Spark Capital is advising Ess Kay Fincorp on the stake sale.

In January, multi-stage private investment firm Norwest Venture Partners had led a $32 million (Rs 200 crore) funding round in Ess Kay Fincorp https://www.vccircle.com/norwest-leads-32-mn-round-in-ess-kay-fincorp-banyantree-exits/. PE investor BanyanTree Growth Capital had fully exited the company in that round.

Ess Kay operates in Rajasthan, Gujarat, Punjab, Haryana, Madhya Pradesh and Maharashtra through a network of 226 branches, according to its website.

Separately, UTI Asset Management Company’s (AMC’s) CEO Leo Puri resigned after finishing his five-year term on Monday, The Economic Times reported.

Imtaiyazur Rahman, chief financial officer of UTI AMC, has been appointed as the interim CEO, the report added.

UTI AMC’s board is set to meet on 21 August to discuss the search process for the new CEO, the report said.

Puri was appointed as CEO in 2013.

The mutual fund house’s domestic shareholders are in a tussle with foreign investor T Rowe Price over granting Puri an extension. T Rowe Price is seeking an extension for Puri.

UTI AMC is 74% owned by state-run Life Insurance Corporation of India, Punjab National Bank, State Bank of India and Bank of Baroda. US financial services major T Rowe Price owns the remaining stake.

Meanwhile, a petition by T Rowe Price at the Bombay High Court seeking an extension of the term was adjourned to 28 August after the US-based investor sought more time saying that it is in talks with the government for an out-of-court settlement of the matter.

T Rowe Price also wants the other shareholders to reduce their individual shareholding to below 10% to comply with the mutual fund shareholding norms set by the Securities and Exchange Board of India.

In another development, HDFC Bank chief executive officer (CEO) Aditya Puri said that deputy managing director Paresh Sukthankar’s resignation last week was due to personal reasons, and not over any dispute regarding succession or bitterness, according to media reports.

Puri added that Sukthankar was a contender for the CEO’s post. Puri is set to retire in 2020.

Puri said that a new CEO will be in place 12 months before his retirement, and the bank will find a replacement for Sukthankar before the end of August.

Sukthankar has been with the bank since its inception in 1994. He worked across areas such as risk management, finance, human resources, investor relations and corporate communications.