Indian hospital chain Max Healthcare Institute has entered a strategic collaboration with the Lakshdeep Group to acquire a 64% stake in Jaypee Healthcare (JHL), which is currently undergoing the corporate insolvency resolution process.

The estimated enterprise value of the acquisition is approximately Rs16.60bn ($197.8m).

This deal is expected to significantly bolster Max Healthcare's existing presence in the National Capital Region (NCR) of Delhi, India.

It includes the acquisition of JHL’s two operational hospitals – the 500-bed Jaypee Hospital in Noida and the 200-bed Jaypee Hospital in Bulandshahr.

This move will grant Max Healthcare a controlling interest in JHL and its flagship asset, the Jaypee Hospital in Noida.

In a stock exchange filing, Max Healthcare said that it will arrange debt to settle the admitted claims of JHL's financial creditors and plans to simultaneously acquire approximately 64% of the company's stake.

The filing stated that there is also an option agreement proposed for the acquisition of the remaining equity stake of roughly 36%.

JHL owns a 100-bed hospital in Anoopshahar, which is not currently operational.  

For the fiscal year 2023-2024, the company reported revenue of Rs4.21bn and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs700m.

The transaction is expected to be completed within the next 30 days, following the revival plan approved by the National Company Law Appellate Tribunal (NCLAT).

This plan aims to sustain Jaypee Hospitals' operations by enhancing operational efficiency and building stakeholder confidence.

Max Healthcare Institute chairman and managing director Abhay Soi said: “The addition of Jaypee Healthcare 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.”

With Max Healthcare as a strategic partner, JHL is poised for potential growth and continued community service.

Max Healthcare operates 20 healthcare facilities, including tertiary and quaternary care hospitals, secondary care hospitals, and medical centres across North India.