Max Healthcare to acquire controlling stake in Jaypee Healthcare, enters collaboration with Lakshdeep Group
This collaboration and the proposed acquisition will give MHIL a controlling stake in JHL, including its flagship asset, the renowned 500-bed Jaypee Hospital, Noida
Max Healthcare announced that it has entered into a strategic collaboration agreement with Lakshdeep Group, the ultimate promoter group of Jaypee Healthcare (JHL) – which is undergoing a Corporate Insolvency Resolution Process. This collaboration and the 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 shall organise debt for repayment of admitted claims of the financial creditors of JHL and proposes to simultaneously acquire ~64 per cent stake in the company, with call and put option for the remaining stake. The acquisition is based on an enterprise value of Rs 1,660 crore, which includes two operational hospitals i.e. 500-bed Jaypee Hospital, Noida and 200-bed Jaypee Hospital Bulandshahr, built on land parcels of 18 acres and 5.75 acres respectively. Further, JHL also owns a 100-bed 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.
Commenting on the transaction, Abhay Soi, Chairman and Managing Director, Max Healthcare Institute, said, “We remain focused on formulating a comprehensive strategy that addresses the demands of all stakeholders involved while prioritising the delivery of quality healthcare services in a sustainable manner and potentially expand the flagship Noida facility to 1200 beds over next few years.”
The transaction, which includes the Strategic Collaboration Agreement and the acquisition of JHL’s stake held by financial creditors, shall be consummated in the next thirty days in line with the revival plan approved by the Hon’ble National Company Law Appellate Tribunal (NCLAT). The revival plan is designed to provide sustainability to the operations of Jaypee Hospitals through appropriate measures to enhance operational efficiency while building confidence among various stakeholders.
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