Max Healthcare to Acquire 64% Stake in Jaypee Healthcare for INR 1,660 Cr

The transaction is set to be completed within the next 30 days, in line with the revival plan approved by the National Company Law Appellate Tribunal.

Max Healthcare Institute has announced the acquisition of a 64% stake in Jaypee Healthcare(JHL) at an enterprise value of INR 1,660 Cr. 

The agreement comes as part of Jaypee Healthcare's Corporate Insolvency Resolution Process (CIRP), with the acquisition poised to enhance Max Healthcare's position in the National Capital Region (NCR) healthcare market.

The acquisition will provide Max Healthcare a controlling stake in JHL, which includes the flagship 500-bed Jaypee Hospital in Noida and another 200-bed facility in Bulandshahr. 

Max has also entered into a strategic partnership with the Lakshdeep Group, the promoter of Jaypee Healthcare, to facilitate the acquisition process.

Under the terms of the agreement, Max will organize debt to settle the admitted claims of JHL's financial creditors. 

Additionally, the company will acquire a 64% stake with provisions for call and put options to purchase the remaining equity.

Abhay Soi, chairman and MD, Max Healthcare, said, "Adding JHL to our network is a significant milestone in our journey to build a robust healthcare presence in the NCR region, home to 46 million people and a critical economic hub."

Financial Details

The INR 1,660 Cr valuation of Jaypee Healthcare reflects its current assets, which include the operational 500-bed Jaypee Hospital in Noida and a 200-bed facility in Bulandshahr, built on land parcels of 18 and 5.75 acres, respectively. 

Additionally, JHL owns a 100-bed hospital in Anoopshahar, though this facility is currently non-operational.

JHL reported revenue of INR 421 Cr and an EBITDA of INR 70 Cr for FY23-24. 

Moreover, the acquisition is expected to strengthen Max Healthcare’s foothold in the region and support its expansion plans. 

According to Soi, the company plans to expand the flagship Noida facility to 1,200 beds over the coming years.

"The acquisition of JHL will allow us to meet the growing healthcare demands in the region and sustainably provide quality services," Max Chairman noted.

The transaction is set to be completed within the next 30 days, in line with the revival plan approved by the National Company Law Appellate Tribunal (NCLAT). 

As part of the revival process, Max Healthcare aims to implement measures that enhance Jaypee Hospitals' operational efficiency and rebuild confidence among its stakeholders.

"The strategic collaboration agreement, along with the acquisition of JHL’s stake held by financial creditors, aligns with our long-term objectives of delivering high-quality healthcare services while addressing the needs of all stakeholders," Soi added.

Shares of Max Healthcare were trading 0.21% higher at INR 914.50 on the BSE on Friday.