Private healthcare provider Max Healthcare Institute Ltd. on December 8 announced the execution of a binding Share Purchase Agreement (SPA) for acquisition of 100 percent stake in Starlit Medical Centre Pvt. Ltd. (Starlit) for an enterprise value of Rs 940 crore.
Starlit had entered into a Business Transfer Agreement (BTA) with Sahara India Medical Institute Ltd for purchase of healthcare undertaking consisting of the 550-bedded Sahara Hospital, Lucknow, on a slump sale basis, the company informed stock exchanges.
The total consideration of Rs 940 crore includes amount payable to financial creditor and sellers, according to the filing.
The hospital is located on a land parcel of ~27 acres at Gomti Nagar, Lucknow, an upmarket residential and commercial hub. It is housed in a 17-storey building with a built-up area of ~ 8.9 Lakh sq ft. and offers multi-disciplinary care in various specialties like Gastroenterology, Neuro, Surgery, Cardiology, Pulmonology and diagnostics facilities. It also has a Nursing College on the same premises, which offers GNM, BSc and MSc courses, with annual intake of 100+ students.
Commenting on the acquisition, Abhay Soi, Chairman and Managing Director, Max Healthcare Institute Ltd., said, “We are excited about this acquisition, which is in line with our strategy to enter new Tier I / II cities which have a developed healthcare services ecosystem. Given our track record of successful postmerger integration, we expect to quickly improve the operating and financial performance on the strength of medical excellence of our clinicians and continued patronage from our patients. Through our presence in Lucknow, we aim to bring quality healthcare to people of Uttar Pradesh.”
The SPA has been executed by Crosslay Remedies Limited (CRL), a wholly- owned subsidiary of MHIL, which owns and operates Max Super Speciality Hospital, Vaishali and Max Medical Centre, Noida. CRL was acquired by MHIL in July 2015 as a part of acquisition of erstwhile Pushpanjali Crosslay Hospital, Vaishali.
Shares of Max Healthcare closed 1.40 percent up at Rs 678.20 at 3.30pm on the NSE.
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