Life Healthcare Group, South Africa's second-biggest private hospital operator, will almost double its stake in India's Max Healthcare Institute to boost profit from foreign sources.
The company will spend about R1.35-billion to increase its shareholding to 46% from 26%, it said yesterday. The deal will include an issue of new Max shares to help reduce debt and fund expansion, and Life Healthcare will also buy stock from fellow investor Max India.
The company is trying to increase profit generated in India and Poland after selling its stake in another South African company, Joint Medical Holdings, in February. It bought a majority stake in Scanmed Multimedis, of Poland, in April.
Life Healthcare will fund the deal by raising debt, it said.
The shares gained 1.8% to R44.70 at the close of the JSE yesterday, the highest since the initial public offering in June 2010.
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