Max Healthcare Institute Ltd. revealed a significant move on December 8, finalizing a binding Share Purchase Agreement (SPA) to acquire a 100 percent stake in Starlit Medical Centre Pvt. Ltd. (Starlit) for an enterprise value of Rs 940 crore.
Max Healthcare inked this agreement as part of Starlit's Business Transfer Agreement (BTA) with Sahara India Medical Institute Ltd, involving the purchase of Sahara Hospital, Lucknow. The deal stands as a slump sale basis agreement and encompasses a 550-bedded hospital, strategically situated in Lucknow's Gomti Nagar, a thriving residential and commercial zone spread across approximately 27 acres.
The transaction's total consideration, amounting to Rs 940 crore, includes payments to financial creditors and sellers, outlined in the official filing. Sahara Hospital stands tall within a 17-storey building, boasting an impressive built-up area of nearly 8.9 lakh sq. ft.
The hospital offers comprehensive healthcare services, specializing in various disciplines such as Gastroenterology, Neurology, Surgery, Cardiology, Pulmonology, and state-of-the-art diagnostic facilities. Additionally, the hospital houses a Nursing College on-premises, providing GNM, BSc, and MSc courses with an annual intake of over 100 students.
Abhay Soi, Chairman and Managing Director of Max Healthcare Institute Ltd., expressed enthusiasm about the acquisition's strategic significance. He emphasized the alignment with their expansion strategy into Tier I and Tier II cities, particularly those with a well-established healthcare infrastructure.
Soi reiterated the institution's history of seamless post-merger integration and their confidence in enhancing operational and financial performance through leveraging their medical expertise and patient trust.
The executed SPA involves Crosslay Remedies Limited (CRL), a wholly-owned subsidiary of MHIL, which operates Max Super Speciality Hospital in Vaishali and Max Medical Centre in Noida. This strategic move builds upon MHIL's prior acquisition of CRL in July 2015 as part of the erstwhile Pushpanjali Crosslay Hospital, Vaishali.
Shares of Max Healthcare closed positively at 1.40 percent, reaching Rs 678.20 at the close of trading on the NSE at 3:30 pm.
This acquisition marks a significant stride for Max Healthcare, expanding their footprint and reinforcing their commitment to delivering high-quality healthcare services to the people of Uttar Pradesh.
Acquisition:
Date: December 8, 2023
Buyer: Max Healthcare Institute Ltd.
Seller: Starlit Medical Centre Pvt. Ltd.
Target: 100% stake in Starlit Medical Centre
Acquisition Price: Rs 940 crore (enterprise value)
Target Asset: 550-bedded Sahara Hospital in Lucknow
Location: Gomti Nagar, Lucknow
Land Area: 27 acres
Building: 17-story, 8.9 lakh sq ft.
Specialties: Gastroenterology, Neurology, Surgery, Cardiology, Pulmonology
Facilities: Diagnostics, Nursing College (GNM, BSc, MSc courses)
Expansion Strategy: Targeting Tier-I / II cities
Rationale for Acquisition: Developed healthcare ecosystem in Lucknow
Expected Benefits: Improved operating and financial performance, quality healthcare for Uttar Pradesh
Subrata Roy (1948-2023), the founder of the Sahara India Pariwar conglomerate, played a significant role in establishing the Sahara Hospital in Lucknow. While the exact details of his involvement are not readily available, some information suggests his contributions:
While the current news article focuses on Max Healthcare's acquisition of Starlit Medical Centre, which owns the Sahara Hospital, it's important to note that Subrata Roy and Sahara India Pariwar previously held ownership of the hospital. The article mentions that Starlit Medical Centre entered into a Business Transfer Agreement (BTA) with Sahara India Medical Institute Ltd. for the purchase of the healthcare undertaking. This suggests that the Sahara Group, under Subrata Roy's leadership, initially established and operated the hospital.
Subrata Roy's vision for the Sahara Hospital was likely driven by his commitment to social responsibility and improving healthcare access for the people of Uttar Pradesh. The hospital's location in Lucknow, a major city in the state, and its focus on multi-disciplinary care with advanced facilities indicate a strong intention to provide quality healthcare services to the community.
The development of the 550-bedded hospital on a 27-acre land parcel, including a 17-story building, suggests significant investment and commitment from Subrata Roy and the Sahara Group. They played a crucial role in constructing and equipping the hospital with modern facilities to cater to various medical needs.
The establishment of a Nursing College within the Sahara Hospital complex further highlights Subrata Roy's vision for comprehensive healthcare services. The college, offering GNM, BSc, and MSc courses, contributes to the development of skilled healthcare professionals, addressing the growing demand for trained nurses in the region.
While the current ownership of the Sahara Hospital has changed, Subrata Roy's initial role in its establishment and development cannot be ignored. His vision and contributions have undoubtedly left a lasting legacy on the healthcare landscape of Lucknow and Uttar Pradesh.
Conclusion:
Max Healthcare's acquisition of Sahara Hospital in Lucknow marks a significant step in the expansion of healthcare services in Uttar Pradesh. The strategic move aligns with Max Healthcare's vision to broaden its footprint in Tier I and Tier II cities, leveraging its expertise to enhance medical services and operational excellence.
The acquisition of Sahara Hospital not only signifies a substantial financial transaction but also underscores a commitment to delivering quality healthcare to the residents of Lucknow.