Max Healthcare acquires majority stake in Jaypee Hospitals

Max Healthcare has acquired a majority stake in Jaypee Healthcare. Max, which is one of the major healthcare facility operators in north India, will pay around Rs 398 crore to buy 63.65 per cent stake in the Noida-based hospital chain.

 Max Healthcare confirmed the deal in its filing to stock exchanges. It had first informed the exchanges of the talks on September 13. “On September 26, 2024 at 8:48 pm (IST), (Max Healthcare) has executed a Share Purchase Agreement (SPA) with Jaypee Infratech Limited and Lakshdeep Group for acquisition of 27,21,09,231 equity shares of Jaypee Healthcare Limited (JHL), free of all encumbrance,” the company said, adding, “the Company shall have a Call Option to acquire remaining equity shares constituting 36.35% of the equity share capital of JHL held by Jaypee Infratech Limited (JIL).”

JHL has been undergoing Corporate Insolvency Resolution Process. Reports say that other than the payment of Rs 398 crore, Max Healthcare will also organise debt repayment of admitted claims of the financial creditors of JHL.

According to reports, JHL has a total debt of about Rs 1,000 crore. Among its largest lenders are JC Flowers ARC, Bank of Baroda, Exim Bank, Punjab National Bank and Asset Reconstruction Company of India (ARCIL). JHL reported revenues of Rs 421 crore and an EBIDTA of Rs 70 crore in 2023-24.

JHL currently operates three hospitals. Its flagship property is a 500-bed hospital in Sector 128 of Noida. It also operates a 200-bed facility in Bulandshahr. A third, 100-bed facility in Anoopshahar is currently not operational.

Max Healthcare, a company headed by Abhay Soi, operates 20 healthcare facilities with more than 4,300 beds and has a significant presence in North India. The company beat rivals like Fortis Healthcare, Apollo Hospitals and Medanta in the race to Jaypee Healthcare.