Lingering suspense for Life Healthcare in India
Political pressure to lower costs and increase regulations in India has affected hospital profits in the past year
It has been a tough year for Life Healthcare as it navigates its course through changes in the health-care landscape in SA and ponders whether to sell its stake in India. With just more than two months before it releases its annual results in November, it is still unclear which way Life Healthcare will go regarding its 49.7% stake in Max Healthcare, one of India's biggest hospital groups. Life Healthcare bought the first part of its stake, 26%, in 2012, increasing it to the current shareholding in 2016. Political pressure to lower costs and increase regulations in India has affected hospital profits in the past year, resulting in talk that the hospital group is considering off-loading its shares to private equity firms. Speaking on the possible sale, the company's CEO, Shrey Viranna, said the discussions about the hospital group selling its stake or staying in India were "too protracted" in his view. However, he could not share further details on the possible sale, for which Life He...
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