Aster’s India and GCC business separation underway
Aster DM Healthcare Limited, one of the largest and fastest growing integrated healthcare providers in GCC and India, has announced that the separation of its India and GCC businesses and the proposed investment in the company’s GCC business by a consortium of investors led by Fajr Capital, a sovereign-owned private equity firm headquartered in the UAE, is nearing imminent completion.
In November 2023, corporate approvals were received to separate the company’s India and GCC businesses into two distinct and standalone entities to unlock long-term value. Under the separation plan, a Fajr Capital-led consortium entered into a definitive agreement to acquire a 65% stake in the company’s GCC business. The plan was approved by the Company’s shareholders in January 2024, a press release said.
As a part of the completion process, the Fajr Capital-led consortium has obtained the necessary approvals from the Kingdom of Saudi Arabia’s General Authority for Competition (GAC). All conditions precedent outlined in the SPA are now complete. No-objection certificates as required from key partners and have been received and local and regulatory authorities in GCC have been informed as necessary about the separation of the businesses and the imminent completion of the Transaction.
The Moopen family will con
tinue to lead and operate the GCC business retaining a 35% stake in the buyer entity. Existing shareholders will continue to remain with the listed Indian entity, Aster DM Healthcare. Upon successful completion of the Transaction, the company intends to declare a substantial portion of the proceeds as dividends to its shareholders, subject to approvals required under law.
In India, the Promoters plan to continue to hold their existing stake in the company and the separation would provide an opportunity for the company to expand its institutional investor base. The company plans to add 1500 beds by FY27 and aims to be among the top 3 hospital chains in India. The expansion
The separation of Aster’s India and GCC businesses will unlock the value and potential of both businesses and provide the needed impetus for the company to further strengthen its presence in both geographies
DR AZAD MOOPEN
plan will encompass a mix of brownfield and greenfield projects, contributing to the company's growth strategy.
Dr Azad Moopen, founder chairman, Aster DM Healthcare, said, “The separation of Aster’s India and GCC businesses will unlock the value and potential of both businesses and provide the needed impetus for the company to further strengthen its presence in both geographies. We are very near to closure and excited to embark on the next stage of growth.”
Alisha Moopen, managing director and Group CEO, Aster GCC business, added, “With most of the processes near closure and necessary approvals in place, we are almost at the closure of the transaction.”