Max Healthcare to acquire 64% stake in Jaypee Healthcare for ₹1,660 cr

Max Healthcare Institute Ltd. (MHIL) on Friday said that it signed an agreement with Lakshdeep Group, the promoter of Jaypee Healthcare Ltd. (JHL), to acquire a 64% stake in the financially struggling entity at an enterprise value of ₹1,660 crore. JHL is currently undergoing the Corporate Insolvency Resolution Process (CIRP).

The company informed exchanges that the acquisition will give MHIL a controlling stake in JHL, including its flagship asset, the 500-bed Jaypee Hospital in Noida. This hospital, JHL’s primary facility, provides a wide range of healthcare services, covering specialties like oncology, renal sciences, orthopaedics, cardiology, and neurology, along with on-site diagnostic services, the release notes.

As per the agreement, the acquisition includes two operational hospitals – the 500-bed Jaypee Hospital in Noida and the 200-bed Jaypee Hospital in Bulandshahr, built on 18 and 5.75 acres of land, respectively. Additionally, JHL owns a non-operational 100-bed hospital on 2.35 acres in Anoopshahar, the release adds.

Max Healthcare will arrange the repayment of debts owed to JHL’s financial creditors, while simultaneously acquiring 64% of the company, with options to buy or sell the remaining stake, the release highlights.

Max Healthcare's chairman and managing director, Abhay Soi said that integrating JHL into their network is a significant step toward expanding their presence in the NCR. “Addition of Jaypee Healthcare Ltd. to the network is an important milestone in our 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 are excited to build upon the legacy of Jaypee Hospitals and leverage our combined expertise to further enhance patient care and expand access to quaternary healthcare services,” says Soi.

“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 1,200 beds over next few years,” Soi adds.

MHIL stated that the transaction, including the strategic partnership and the acquisition of JHL's stake from financial creditors, is expected to be completed within 30 days, aligning with the revival plan approved by the National Company Law Appellate Tribunal (NCLAT).

The revival plan seeks to ensure long-term sustainability for Jaypee Hospitals by improving operational efficiency and rebuilding stakeholder confidence, it adds.

For the financial year 2023-24, JHL generated revenue of ₹421 crore and an EBITDA of ₹70 crore.