Hospital chain Max Healthcare Institute Ltd on Friday (December 8) said the company is acquiring a 100% stake in Starlit Medical Centre for ₹940 crore.
We wish to inform you that Crosslay Remedies Limited, a wholly-owned subsidiary of the company has today i.e. December 8, 2023, entered into a Share Purchase Agreement in relation to its proposed acquisition of a 100% stake in Starlit Medical Centre Private Limited,” the company said in a regulatory filing.
The agreement entails the acquisition of a 100% stake in Starlit Medical Centre Private Ltd for an enterprise value of ₹940 crore (including the amount payable to financial creditors and sellers). This is facilitated through one of Max Healthcare’s wholly-owned subsidiaries, Crosslay Remedies Ltd (CRL).
Starlit had entered into a Business Transfer Agreement (BTA) with Sahara India Medical Institute Ltd for purchase of Healthcare Undertaking consisting of 550 bedded Sahara Hospital, Lucknow, on a slump sale basis,” the company said.
Sahara 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 square feet and offers multi-disciplinary care in various specialties like gastroenterology, neuro, surgery, cardiology, pulmonology, and diagnostics facilities.
“Further, the board of directors of the company in its meeting held today, i.e. December 8, 2023, have approved to provide loan to Crosslay and corporate guarantee for securing a loan to be taken by Starlit,” Max Healthcare stated.
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Post-acquisition, Starlit shall become a wholly-owned subsidiary of Max Healthcare Institute. The acquisition of Starlit Medical Centre by Max Healthcare Institute is anticipated to be completed within a time frame of 2-3 months.
Sahara Hospital also has a nursing college on the same premises, which offers GNM, BSc, and MSc courses, with an annual intake of 100+ students. The hospital has the potential to quickly ramp up beds in existing buildings and expand medical programmes like oncology, transplants, robotics, etc.
It currently serves two lakh patients every year and has a renowned centre of excellence for neurosciences. The current operational bed capacity is 250 beds, with an FY24 revenue run rate of ₹200 crore.
