"The company, as a strategic partner in this arrangement, will enter into an agreement to acquire approximately 64% equity stake in JHL within 30 days of the NCLAT order. Additionally, the company plans to acquire the remaining 36% equity stake through an option agreement," stated Max Healthcare.
New Delhi: Max Healthcare announced on Friday that it had acquired a 64% stake in Jaypee Healthcare. The company made this announcement in a filing with the exchange. It also revealed plans to purchase the remaining 36% stake through an option agreement.
Max Healthcare explained that it had entered into a strategic partnership with Lakshdeep Group, the promoter of Jaypee Healthcare Ltd. (JHL), to gain control of JHL, which is currently undergoing the Corporate Insolvency Resolution Process (CIRP).
Under the agreement, Max Healthcare will acquire the 64% stake in Jaypee Healthcare at an enterprise value of Rs 1,660 crore. The acquisition includes the 500-bed Jaypee Hospital in Noida, along with two other hospitals in Bulandshahr and Anoopshahar, Uttar Pradesh.
Max Healthcare also committed to organizing the necessary debt repayment to financial creditors while securing call and put options for the remaining shares.
"The addition of Jaypee Healthcare Ltd. to our network is a significant milestone in our efforts to strengthen our presence in the NCR—a region that not only houses 46 million people but also plays "A key player in shaping India’s economy as a vital hub, we are eager to build on the legacy of Jaypee Hospitals, utilizing our expertise to elevate patient care and expand access to advanced healthcare services," said Abhay Soi, Chairman and Managing Director of Max Healthcare Institute.
Jaypee Healthcare reported revenues of Rs 421 crore and an EBITDA of Rs 70 crore for the 2023-24 fiscal year. The transaction is expected to close within 30 days, pending approval from the National Company Law Appellate Tribunal (NCLAT). (ANI)
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