Max Healthcare Institute inks deal to acquire controlling stake in Jaypee Healthcare

Max Healthcare Institute (MHIL) has entered into a Strategic Collaboration Agreement with Lakshdeep Group, the ultimate promoter group of Jaypee Healthcare (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 renowned 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 Rs 1,660 crore, reflecting JHL's strong market position, which includes two operational hospitals i.e. 500-bedsJaypee Hospital, Noida and 200-beds Jaypee Hospital Bulandshahr, built on land parcel of 18 acre and 5.75 acre respectively. Further JHL also owns a 100-beds hospital spread over 2.35 acres at Anoopshahar, which is currently non-operational. JHL reported revenue of Rs 421 crore and EBITDA of Rs 70 crore for the year 2023-24.

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). 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. With the proposed transaction and collaboration with Max Healthcare as strategic partner to the revival plan, JHL is well positioned for potential growth and continued services to the community.

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