New Delhi-based Max Healthcare buys 64% stake in struggling Jaypee Healthcare

New Delhi-based healthcare services provider Max Healthcare Institute Ltd. recently announced that it has entered into a strategic collaboration agreement with Lakshdeep Group, the promoter group of Jaypee Healthcare Limited, which is undergoing the 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.

Acquiring 64% stake in JHL

Under the agreement, Max Healthcare will also arrange financing to repay the financial creditors of JHL as part of the agreement.

The company is acquiring 64% stake in Jaypee Healthcare (JHL) with an option to purchase the remaining 36% at 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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Leadership comments

“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," said Abhay Soi, Chairman and 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 expand the flagship Noida facility to 1200 beds over next few years," Soi added.

The deal is expected to be finalized within 30 days in line with the revival plan approved by the 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.