Max Healthcare to acquire 64% in Jaypee Healthcare for Rs 1.7k cr

Max Healthcare (MHIL) will 64% stake in financially stressed Jaypee Healthcare (JHL) for an enterprise value of Rs 1,660 crore. Max Healthcare in an exchange filing informed that it has entered into a strategic agreement with Lakshdeep Group, the promoter of Jaypee Healthcare Ltd (JHL) which is undergoing Corporate Insolvency Resolution Process (CIRP). 

This strategic collaboration and proposed acquisition will give MHIL a controlling stake in JHL, including its flagship asset, the renowned 500-beds Jaypee Hospital, Noida. 

The NCLAT has approved the settlement agreed to between Lakhsdeep Group and the Committee of Creditors of Jaypee Healthcrae through its order dated 12 September 2024. Max Healthcare, as strategic partner under the aforesaid arrangement, will enter into an agreement to acquire 64% equity stake of JHL within 30 days of NCLAT order. The Company proposes to enter into option agreement for acquisition of remaining 36% equity stake.

Under the agreement, MHIL will organize debt for repayment of admitted claims of the financial creditors of JHL and proposes to simultaneously acquire 64% stake in the company, with call and put option for the remaining stake. The acquisition includes two operational hospitals — 500-beds Jaypee Hospital, Noida and 200-beds Jaypee Hospital Bulandshahr, built on land parcel of 18 acre and 5.75 acre respectively. 

Further Jaypee Healthcare also owns a 100-beds hospital spread over 2.35 acres at Anoopshahar, which is currently non-operational. JHL reported revenue of Rs 421 crore and EBITDA of Rs 70 crore for the year 2023-24.

Abhay Soi, Chairman and Managing Director, Max Healthcare Institute, said that the addition of Jaypee Healthcare to the network is an important milestone in their journey to build a formidable presence in NCR – a region which is not only home to 46 million people but also plays a pivotal role in shaping the Indian economy as an economic hub.

“We remain focused on formulating a comprehensive strategy that addresses the demands of all stakeholders involved while prioritizing the delivery of quality healthcare services in a sustainable manner and potentially expand the flagship Noida facility to 1200 beds over next few years.”

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