Max Healthcare Friday said it will acquire a controlling stake in healthcare services provider Jaypee Healthcare from Lakshdeep Group, which had got control of the hospital chain as part of its bid for Jaypee Infratech.
Under the agreement, Max Healthcare will acquire a 64% stake in Jaypee Healthcare, which is currently undergoing the Corporate Insolvency Resolution Process (CIRP). The company will also enter into an option agreement for acquiring the remaining 36% equity stake.
The enterprise value of Jaypee Healthcare has been set at Rs 1,660 crore, according to a press statement by Max Healthcare. Jaypee Healthcare, which owns a 500-bed hospital in Noida and a 200-bed hospital in Bulandshahr, reported revenue of Rs 421 crore and EBITDA of Rs 70 crore in 2023-24. It also owns a 100-bed non-operation hospital in Anoopshahar, Uttar Pradesh.
Max Healthcare currently has a capacity of 4,300 beds.
To fund the acquisition, Max Healthcare may secure short-term loans of up to Rs 1,000 crore from banks and financial institutions to refinance Jaypee Healthcare’s existing debt as an interim arrangement, it said.
“We remain focused on formulating a comprehensive strategy that addresses the needs of all stakeholders while prioritizing quality healthcare services. Additionally, we aim to expand the Noida facility to 1,200 beds in the coming years,” said Abhay Soi, chairman and managing director of Max Healthcare Institute Ltd.
Established in 2012, Jaypee Healthcare provides services in cardiology, oncology, organ transplants, orthopedics, minimally invasive surgery, and more.
