Max Healthcare to Boost NCR Presence with ₹1,660 Crore Acquisition of Jaypee Hospitals

On September 13, 2024, Max Healthcare Institute Ltd (MHIL), one of India’s largest private healthcare providers, announced a strategic partnership with Lakshadweep Group, the main promoter of Jaypee Healthcare Limited (JHL), which is currently in Corporate Insolvency Resolution Process (CIRP). 

This partnership will give MHIL a controlling stake in JHL, including its flagship 500-bed Jaypee Hospital in Noida.

Under the agreement, MHIL will secure funding to settle JHL’s debts and will acquire approximately 64% of JHL’s shares, with options to buy the remaining shares later. The total deal is valued at ₹1,660 crore. JHL’s assets include the 500-bed Jaypee Hospital in Noida, a 200-bed Jaypee Hospital in Bulandshahr, and a 100-bed hospital in Anoopshahar that is not currently operational. For the fiscal year 2023-24, JHL reported a revenue of ₹421 crore and an EBITDA of ₹70 crore.

Jaypee Hospital Noida is known for its excellent medical care and dedication to patient well-being, making it a trusted choice for people in Noida and nearby areas. With this acquisition, Max Healthcare Institute Ltd. (MHIL) will greatly expand its network and strengthen its leadership in the NCR region.

Commenting on the transaction, Mr Abhay Soi, Chairman and Managing Director of Max Healthcare Institute Ltd, said, “The 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.”

He further added, “We are excited to build upon the legacy of Jaypee Hospitals and leverage our combined expertise to enhance patient care further 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 expanding the flagship Noida facility to 1200 beds over the next few years.”

The deal, which includes the Strategic Collaboration Agreement and the purchase of JHL’s shares from financial creditors, is expected to be completed within the next 30 days, following the revival plan approved by the National Company Law Appellate Tribunal (NCLAT). This plan aims to make Jaypee Hospitals more sustainable by improving operations and building trust among stakeholders.

By partnering with Max Healthcare, JHL is set up for future growth and will continue to serve the community effectively.

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