Max Healthcare to Acquire 64% Stake in Jaypee Healthcare

Max Healthcare Institute Limited, a major player in the Indian healthcare sector, has announced its plan to acquire a 63.65% equity stake in Jaypee Healthcare Limited (JHL) for approximately Rs.398 crore. This acquisition comes amid Jaypee Healthcare’s ongoing Corporate Insolvency Resolution Process (CIRP) and shows Max Healthcare’s strategy to strengthen its operations in the National Capital Region (NCR).

Details of the Acquisition

Max Healthcare’s agreement, finalized through a Share Purchase Agreement (SPA) with Jaypee Infratech and Lakshdeep Group, consists of the acquisition of 27.21 crore equity shares, marking its expansion. The overall enterprise value of this deal is pegged at Rs.1,660 crore. As part of this agreement, Max Healthcare plans to arrange financing to cover the repayment of claims owed to JHL’s financial creditors.

Jaypee Healthcare operates three hospitals in Uttar Pradesh, including a prominent 500-bed facility in Noida and a 200-bed hospital in Bulandshahr. Additionally, it possesses a non-operational 100-bed hospital in Anoopshahr. With a reported revenue of Rs.421 crore and an EBITDA of Rs.70 crore for FY24, JHL represents a lucrative opportunity for Max Healthcare, which aims to leverage these assets to expand healthcare services in the region.

Why This Matters

Abhay Soi, the Chairman and Managing Director of Max Healthcare, talked about the importance of this acquisition in establishing a foothold in the NCR. This region, home to around 46 million people, is not just densely populated but also a player in driving the Indian economy. By bringing Jaypee Healthcare into the fold, Max aims to expand healthcare services in a region that truly needs it.

The deal is pending specific conditions, including the release of pledged shares by JHL’s lenders. Following the National Company Law Appellate Tribunal’s (NCLAT) approval of a settlement agreement on September 12, 2024, the transaction is expected to close within 30 days, granting Max Healthcare operational control over Jaypee’s hospitals.

Conclusion: In conclusion, Max Healthcare’s acquisition of Jaypee Healthcare is more than just a business move; it’s a commitment to improving healthcare access in a vital region. This partnership has the potential to elevate healthcare services, benefiting both the company and the communities it serves. Exciting times lie ahead!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.