NEW DELHI: Max Healthcare (MHIL) is acquirng 64% stake in Jaypee Healthcare for an enterprise value of Rs 1,660 crore. In a regulatory filing, Max said 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-bed Jaypee Hospital, Noida.
Under the agreement, MHIL will organise debt for repayment of admitted claims of the financial creditors of JHL and proposes to acquire 64% stake in the company, with call and put option for remaining stake. The acquisition includes two operational hospitals i.e. 500-bed Jaypee Hospital, Noida and 200-beds Jaypee Hospital Bulandshahr, built on land parcel of 18 acre and 5.75 acre respectively.
JHL owns a 100 beds hospital spread over 2.35 acres at Anoopshahar, which is non-operational. JHL reported revenue of Rs 421 crore and EBITDA of Rs 70 crore for the year 2023-24.
Abhay Soi, Chairman and MD, Max Healthcare Institute, said the addition of Jaypee to the network is an important milestone 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 demands of stakeholders involved while prioritising delivery of quality healthcare services in a sustainable manner and expand the flagship Noida facility to 1200 beds over next few years.”