Max Healthcare enters into Strategic Collaboration with Lakshdeep Group for revival and turnaround of Jaypee Healthcare Ltd

Max Healthcare Institute Ltd. (MHIL, "the Company"), one of India's largest private healthcare providers, has entered into a Strategic Collaboration Agreement with Lakshdeep Group, the ultimate promoter group of Jaypee Healthcare Limited ("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 INR 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 INR 421 crore and EBITDA of INR 70 crore for the year 2023-24.

Jaypee Hospital Noida is recognized for its exceptional medical care and commitment to patient wellbeing, making it a trusted healthcare destination for residents of Noida and surrounding region. This acquisition will significantly enhance MHIL's network and strengthen its leadership position in NCR.

Commenting on the transaction, Mr. Abhay Soi, Chairman and Managing Director, Max Healthcare Institute Ltd., said: "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. We are excited to build upon the legacy of Jaypee Hospitals and leverage our combined expertise to further enhance patient care 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 expand the flagship Noida facility to 1200 beds over next few years."

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.

Shares of Max Healthcare Institute Limited was last trading in BSE at Rs. 908.70 as compared to the previous close of Rs. 912.60. The total number of shares traded during the day was 23637 in over 1306 trades.

The stock hit an intraday high of Rs. 925.00 and intraday low of 896.60. The net turnover during the day was Rs. 21505234.00.

Source : Equity Bulls

Keywords

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