Max Healthcare Institute Ltd. (MHIL, “the Company”) announced that it entered into a Strategic Collaboration Agreement with Lakshdeep Group, the ultimate promoter group of Jaypee Healthcare Limited (“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 500-beds Jaypee Hospital, Noida.
Under the agreement, MHIL shall organize debt for repayment of admitted claims of the financial creditors of JHL and proposes to simultaneously acquire ~64% stake in the company, with call and put option for the remaining stake. The acquisition is based on an enterprise value of INR 1,660 Crore, reflecting JHL’s strong market position, which includes two operational hospitals i.e. 500-beds Jaypee Hospital, Noida and 200-beds Jaypee Hospital Bulandshahr, built on land parcel of 18 acre and 5.75 acre respectively. The flagship Noida hospital, with 376 operational beds, currently serves ~2.5 lakh patients every year and has centres of excellence for Cardiac, Oncology and Renal Sciences. Further JHL also owns a 100-beds hospital spread over 2.35 acres at Anoopshahar, which is currently non-operational. JHL reported revenue of INR 421 crore and EBITDA of INR 70 crore for the year 2023-24.
Commenting on the transaction, Mr. Abhay Soi, Chairman and Managing Director, Max Healthcare Institute Ltd., said: “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. 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.”
The transaction, which includes the Strategic Collaboration Agreement and the acquisition of JHL’s stake held by financial creditors, shall be consummated in next thirty days in line with the revival plan approved by the Hon’ble National Company Law Appellate Tribunal (NCLAT).
About Jaypee Healthcare Limited:
Jaypee Healthcare Limited was incorporated on Oct 30, 2012 as a wholly owned subsidiary of Jaypee Infratech Limited to establish Jaypee Hospitals. 500 bedded Jaypee Hospital, located on 18-acre land parcel in Sector 128 Noida, is the flagship hospital which is easily accessible from Delhi, Noida and Yamuna Expressway. In addition, it also operates a 200 bed multi-specialty hospital in Bulandshahr (UP) which is located on 5.75 acres of land and a hospital in Anoopshahr (UP) spread over 2.35 acres of land, which is currently non-operational.
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