INDIA – Max Healthcare Institute has agreed to purchase Eqova Healthcare, a company that has a long-term exclusive right to develop and provide medical services to a hospital in Patparganj, Delhi, India.
The new 400-bed hospital will be built on 2.1 acres of land owned by Nirogi Charitable and Medical Research Trust.
The hospital’s first phase, located on the NH 24 expressway, will include 250 beds and medical programs such as organ transplant and oncology.
It will also offer multidisciplinary care in neurosciences, cardiac sciences, and renal sciences, among other areas. As a result, the hospital will benefit from both revenue and cost synergies with the existing facility.
The hospital’s initial phase is scheduled to open in the first half of 2026. At the moment, the site is home to a 20-bed hospital.
Following the completion of this phase, the second phase will include the operationalization of 1,150 beds.
Dr. Abhay Soi, chairman and managing director of Max Healthcare Institute, stated, “This new hospital will allow us to cater to the need for quality healthcare in the East Delhi community while also fortifying our network footprint in the NCR in a synergistic manner.”
“It will further enable us to bring high end clinical program and technologies to the region and also help us to continue serving the indigent patient community.”
Once fully operational, the new hospital is expected to provide free treatment to approximately 60,000 economically disadvantaged patients per year in its out-patient and in-patient departments.
The company stated that it will initially acquire a majority stake in Eqova Healthcare by purchasing a 26 percent stake in the company.
The Escrow mechanism is set up for an additional 34% under call or put options that will be exercised based on the achievement of certain milestones.
Furthermore, the companies have agreed to call/put options for the remaining stake, which will be exercised based on the achievement of the defined milestones.
Max Healthcare Institute is one of India’s largest hospital chain operator (considering only income from healthcare services) in fiscal 2020.
It has major concentration in North India consisting of a network of 16 healthcare facilities. Out of the total network, eight hospitals and four medical centres are located in Delhi and the National Capital region (NCR) and the others are located in the cities of Mumbai, Mohali, Bathinda and Dehradun.
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