Max Healthcare To Secure 64% Stake In Jaypee Healthcare
The Rs 1,660 crore acquisition will expand Max Healthcare’s network and solidify its leadership in the NCR region.
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(Source: Max Healthcare Institute in Delhi/ Company website)
Max Healthcare Institute Ltd. board has approved the strategic collaboration with Lakshdeep Group, the promoter of Jaypee Healthcare Ltd., by organising debt repayment of JHL's financial creditors and, in the process, acquiring a 64% stake in the company.
The company also has the option to purchase the remaining shares in Jaypee Healthcare, which is currently undergoing the corporate insolvency resolution process, according to an exchange filing.
The Rs 1,660 crore acquisition will expand Max Healthcare’s network and solidify its leadership in the NCR region.
Through this collaboration and proposed acquisition, Max Healthcare will secure a controlling stake in Jaypee Healthcare, including its flagship 500-bed Jaypee Hospital in Noida.
JHL’s assets include two operational hospitals—500-bed Jaypee Hospital in Noida and 200-bed Jaypee Hospital in Bulandshahr—spanning 18 acres and 5.75 acres, respectively. It also owns a non-operational 100-bed hospital on 2.35 acres in Anoopshahar. JHL reported revenue of Rs 421 crore and an Ebitda of Rs 70 crore in fiscal 2023-24.
Shares of Max Healthcare Institute were trading 0.45% lower at Rs 916.75 apiece, compared to a 0.06% decline in the BSE Sensex at 2:00 p.m.
Thirteen out of the 20 analysts tracking the company have a 'buy' rating on the stock, three have a 'hold' and four suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 0.6%.
