IFC to exit $65m stake in India’s Max Healthcare

The World Bank investment arm will sell its entire 7.5% stake to Max Healthcare’s parent company and South African hospital operator Life Healthcare.

The International Finance Corporation, the private sector arm of the World Bank Group, will fully exit its stake in New Delhi-based healthcare provider Max Healthcare, according to a company statement.

IFC will sell its entire 7.5 percent stake to Max India, Max Healthcare’s parent company, and South African hospital operator Life Healthcare for INR 4.23 billion ($65.5 million; €60.3 billion).

Following the deal, the pair will each own about 50 percent in the company.

IFC acquired stakes in the company in multiple tranches over a period of 10 years, including a $59.2 million equity investment in 2007 and a further $31.25 million in 2009.

Max Healthcare owns and operates a network of 14 hospitals across India, offering treatment for 30 specialities from cancer care to neuroscience and orthopaedics.

In March, IFC, Max Healthcare and US-based digital health start-up WellDoc launched a mobile application for diabetes care, which will be piloted with a group of patients in Delhi.

IFC has been an active investor private healthcare, with an active portfolio of about $1.7 billion of health investments globally.

In India, IFC’s healthcare investments are valued at over $477 million, representing 28 percent of its global healthcare portfolio. Among its investments are kidney care provider NephroPlus, eyecare chain Eye-Q Vision, and home care provider Portea. In December 2016, IFC also invested $67 million in Apollo Health and Lifestyle Limited to expand Apollo’s small-format healthcare centres across India.