Max Healthcare Institute Ltd., a New Delhi-based healthcare services provider, recently announced that it has entered into a strategic collaboration agreement with Lakshdeep Group, the promoter group of Jaypee Healthcare Limited, which is undergoing Corporate Insolvency Resolution Process.
The company said the acquisition will give it a controlling stake in JHL, including its flagship asset, the 500-bed Jaypee Hospital in Noida.
Acquisition of 64% of JHL shares
Under the agreement, Max Healthcare will also arrange financing to repay JHL’s financial creditors as part of the settlement.
The company is acquiring a 64% stake in Jaypee Healthcare (JHL) with an option to buy the remaining 36% for an enterprise value of Rs 1,660 crore.
The acquisition will give Max Healthcare a controlling stake in a 500-bed hospital in Noida, as well as two additional hospitals in Bulandshahr and Anoopshahr, Uttar Pradesh.
JHL reported revenue of Rs 421 crore and EBITDA of Rs 70 crore for the year 2023-24.
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Comments from the leaders
“The addition of Jaypee Healthcare Ltd. to the network is a significant milestone in our journey towards building a formidable presence in NCR, a region that is not only home to 46 million people but also plays a pivotal role in shaping the Indian economy as an economic hub. We are excited to build on the legacy of Jaypee Hospitals and leverage our combined expertise to further enhance patient care and expand access to quaternary healthcare services,” said Abhay Soi, Chairman & Managing Director, Max Healthcare Institute Ltd.
“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 expanding the flagship Noida facility to 1,200 beds in the coming years,” Soi added.
The deal is expected to be finalised within 30 days as per the revival plan approved by the National Company Law Appellate Tribunal (NCLAT).
The revival plan is designed to bring sustainability to the operations of Jaypee Hospitals through appropriate measures to improve operational efficiency while building trust among various stakeholders.
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