Max Healthcare Institute Ltd said it will fully acquire Starlit Medical Centre Pvt Ltd for an enterprise value of Rs 940 crore thereby giving it the ownership of 550-bedded Sahara Hospital in Lucknow. The company has executed a binding share purchase agreement (SPA) for the acquisition of 100 per cent stake of Starlit Medical Centre Pvt Ltd, which had entered into a business transfer agreement with Sahara India Medical Institute Ltd for purchase of healthcare undertaking consisting of 550-bedded Sahara Hospital, Lucknow, on a slump sale basis, Max Healthcare Institute said in a statement.
The SPA was executed for an enterprise value of Rs 940 crore through one of the company’s wholly-owned subsidiaries, Crosslay Remedies Ltd (CRL), it added.
This acquisition marks Max Healthcare’s entry into Lucknow, one of the fastest growing cities of Uttar Pradesh, it said, adding Sahara Hospital is a tertiary care hospital, providing integrated healthcare services with availability of all super specialties like gastroenterology, neurology, surgery, cardiology, pulmonology and diagnostics facilities under one roof.
Max Healthcare Institute Chairman and Managing Director Abhay Soi said the acquisition is in line with the company’s strategy to enter new Tier I and Tier II cities which have a developed healthcare services ecosystem.
“Given our track record of successful post-merger 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 patient,” he added.
The current operational bed capacity of Sahara Hospital is around 250 beds, with FY24 revenue run rate of Rs 200 crore. It currently serves around 2 lakh patients every year. It also has a nursing college on the same premises with annual intake of over 100 students, the statement said.
