In a strategic partnership with the Lakshdeep Group, JHL’s promoter, Max Healthcare, one of the biggest healthcare providers in India, announced that it had acquired a 64% share in JHL. With this transaction, which had an enterprise value of ₹1,660 crore, Max Healthcare is taking a big step toward growing its footprint in the National Capital Region (NCR).
Jaypee Healthcare runs two more hospitals in Bulandshahr and Anoopshahar, Uttar Pradesh, in addition to the 500-bed Jaypee Hospital in Noida, which is presently going through the Corporate Insolvency Resolution Process (CIRP). Because of its position in the National Capital Region (NCR), which is home to approximately 46 million people and a vital economic powerhouse of India, the Noida hospital is a valuable asset in the transaction.
The two stages of Max Healthcare’s plan to purchase a majority interest in JHL will be completed. Max will first purchase a 64% ownership in JHL. A call and put option deal will be used to purchase the remaining 36%, guaranteeing Max Healthcare’s future total ownership. As part of the deal, Max Healthcare will also take care of JHL’s financial creditors’ required debt payback.
The acquisition has excited Abhay Soi, Chairman and Managing Director of Max Healthcare. He stressed that the inclusion of Jaypee Healthcare in the Max Healthcare network is a significant step towards their goal of expanding their reach in the National Capital Region and providing quaternary healthcare services, or extremely specialized care, to a broader patient base. It is anticipated that the combined knowledge of the two institutions will improve patient care and increase access to specialized healthcare services.
Jaypee Healthcare demonstrated its operational success in the fiscal year 2023–24 with revenues of ₹421 crore and an EBITDA (earnings before interest, taxes, depreciation, and amortization) of ₹70 crore. It is anticipated that Max Healthcare’s strategic acquisition of Jaypee Healthcare will strengthen its hospital network and solidify its leadership position in the Indian healthcare sector, especially in the National Capital Region..
The transaction is anticipated to be finalized over the next thirty days, pending final approval from the National Company Law Appellate Tribunal (NCLAT). The acquisition is in line with Max Healthcare’s long-term growth strategy, which focuses on growing the company’s presence in fast-growing areas like the NCR and improving patient access to healthcare.
With this acquisition, Max Healthcare is demonstrating its dedication to growing its network and improving healthcare in strategic areas of India.
SOURCE :
TIMES OF INDIA
