Jaypee Healthcare is a subsidiary of the debt-ridden Jaypee Infratech; and is at present going company insolvency proceedings.
Max Healthcare could have the choice to amass the remaining 36 per cent at a later stage.
Acquisition can be for a money consideration, together with refinance of money owed of Jaypee Healthcare.
This acquisition will give Max Healthcare entry to Jaypee’s flagship asset, the 500-bed facility at Noida. This aside, acquisition can even embrace the 200-bed Jaypee Hospital Bulandshahr. Jaypee Healthcare additionally owns a 100-bed hospital at Anoopshahar, which is at present non-operational.
Jaypee Healthcare reported a income of ₹421 crore and EBITDA of ₹70 crore in FY-24.
In a inventory market notification, Max Healthcare mentioned, the board has authorized execution of strategic collaboration settlement with Lakshdeep Investments and Finance Non-public Ltd and Lakshdeep Infrastructure and Holdings Non-public Ltd (collectively referred as Lakshdeep Group).
Lakshdeep Group entities are oblique holding firms of Jaypee Healthcare, who’ve been permitted to work out or submit a viable plan or answer in relation to latter’s revival.
The NCLAT on September 12 has authorized the settlement agreed to between Lakhsdeep Group and the Committee of Collectors (CoC)of Jaypee Healthcare.
“Max Healthcare as strategic companion underneath the aforesaid association, shall enter into an settlement to amass 64 per cent fairness stake of Jaypee Healthcare inside 30 days of NCLAT order,” it mentioned.
It additionally “proposes to enter into possibility settlement for acquisition of remaining 36 per cent fairness stake”.
“The acquisition of Jaypee Healthcare is designed to broaden the corporate’s footprint in Delhi – NCR. Jaypee Healthcare owns two operating hospitals and thus will add to income and profitability of the Group instantly on consummation of the share buy transaction,” the corporate mentioned to the bourses as a part of its clarification for going forward with the acquisition.
Fundraise plan
Max Healthcare can even be elevating funds by the use of short-term loans on the firm degree as much as ₹1,000 crore. It shall additionally organise mortgage at Jaypee Healthcare degree for the reimbursement of its short-term debt.
The board has additionally authorized issuance of company assure to the financial institution/ monetary establishment for mortgage proposed to be prolonged to Jaypee Healthcare.
Refinancing of the prevailing debt at Jaypee Healthcare can be an interim association. The short-term monetary help granted shall be repaid as soon as common mortgage is disbursed by financial institution or monetary establishments to Jaypee, post-acquisition by Max.
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