Max Healthcare to Acquire 64% Stake in Jaypee Healthcare
New Delhi [India], September 13: Max Healthcare announced on Friday that it will acquire a 64% stake in Jaypee Healthcare. The company also plans to acquire the remaining 36% through an option agreement.
Max Healthcare will enter into an agreement to acquire the 64% equity stake of Jaypee Healthcare Ltd. (JHL) within 30 days of the NCLAT order. The acquisition is valued at Rs 1660 crore and includes the 500-bed Jaypee Hospital in Noida, as well as two other hospitals in Bulandshahr and Anoopshahar, Uttar Pradesh.
Max Healthcare has partnered with Lakshdeep Group, the promoter of JHL, to acquire a controlling stake in JHL, which is currently undergoing the Corporate Insolvency Resolution Process (CIRP). The company will manage the necessary debt repayment to financial creditors and secure call and put options for the remaining shares.
Abhay Soi, Chairman and Managing Director of Max Healthcare Institute, stated, “Addition of Jaypee Healthcare Ltd. to the network is an important milestone in our journey to build a formidable presence in the 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.”
Jaypee Healthcare reported revenues of Rs 421 crore and an EBITDA of Rs 70 crore in the 2023-24 fiscal year. The transaction is expected to be completed within the next 30 days, following approval from the National Company Law Appellate Tribunal (NCLAT).
Doubts Revealed
Max Healthcare -: Max Healthcare is a big company in India that runs many hospitals and provides medical services to people.
Acquire -: Acquire means to buy or take control of something. In this case, Max Healthcare is buying a part of Jaypee Healthcare.
Stake -: A stake is a part or share in a company. Max Healthcare is buying 64% of Jaypee Healthcare, which means they will own most of it.
Jaypee Healthcare -: Jaypee Healthcare is another company in India that runs hospitals and provides medical services.
Rs 1660 crore -: Rs 1660 crore is a large amount of money in Indian currency, which is the Indian Rupee. It is the value of the deal between Max Healthcare and Jaypee Healthcare.
Jaypee Hospital -: Jaypee Hospital is a big hospital in Noida, a city near Delhi in India. It is one of the hospitals included in the deal.
Noida -: Noida is a city in the state of Uttar Pradesh, near Delhi, the capital of India.
NCR region -: NCR stands for National Capital Region. It includes Delhi and nearby cities like Noida, Gurgaon, and Ghaziabad.
NCLAT -: NCLAT stands for National Company Law Appellate Tribunal. It is a special court in India that deals with company-related issues and approvals.