Dubai | Bangalore: Aster DM Healthcare Limited (“Company”), a prominent integrated healthcare provider in GCC and India, has announced that the division of its India and GCC businesses, along with the proposed investment in the GCC business by a consortium led by Fajr Capital, a UAE-based sovereign-owned private equity firm, is on the verge of completion.
Key highlights :
- In November 2023, Aster DM Healthcare Limited revealed its intention to sell shares held by Affinity Holdings Pvt Ltd (“Company”), a wholly-owned subsidiary, in Aster DM Healthcare FZC to Alpha GCC Holdings Limited (“Transaction”).
- The primary objective of this plan was to separate Aster’s India and GCC businesses to unlock long-term value. Under this arrangement, a consortium led by Fajr Capital would acquire a 65% stake in the Company’s GCC business. Progress towards finalizing the separation plan has been significant, with key regulatory approvals secured, including clearance from Saudi Arabia’s General Authority for Competition, and major transaction milestones achieved.
- All conditions outlined in the Sale and Purchase Agreement (SPA) have been met.
- Aster DM Healthcare FZC has successfully integrated the Company’s business operations in Qatar.
In November 2023, corporate approvals were secured to separate the Company’s India and GCC businesses into two distinct entities to unlock long-term value. As part of this plan, a Fajr Capital-led consortium entered into a definitive agreement to acquire a 65% stake in the Company’s GCC business, a move approved by the Company’s shareholders in January 2024.
The Fajr Capital-led consortium has obtained necessary approvals from the Kingdom of Saudi Arabia’s General Authority for Competition (GAC), completing all conditions outlined in the SPA. Required no-objection certificates have been obtained from key partners, and relevant local and regulatory authorities in GCC have been informed about the impending completion of the transaction. Additionally, the integration of business operations in Qatar into Aster DM Healthcare FZC’s transaction perimeter has been successfully executed.
The Moopen family will retain a 35% stake in the buyer entity and continue to lead and operate the GCC business. Existing shareholders will remain with the listed Indian entity, Aster DM Healthcare Ltd. Following the successful completion of the transaction, a significant portion of the proceeds will be declared as dividends to shareholders, subject to necessary approvals.
In India, the Promoters intend to maintain their existing stake in the Company, with the separation offering an opportunity to expand the institutional investor base. The Company aims to add 1500 beds by FY27 and become one of India’s top three hospital chains, with plans for both brownfield and greenfield projects. An investment of Rs. 850-900 crore has been planned to support this expansion, including the upcoming Aster Capital in Trivandrum and Aster MIMS Kasargod.
Dr. Azad Moopen, Founder Chairman of Aster DM Healthcare, stated, “The separation of Aster’s India and GCC businesses will unlock the value and potential of both segments, enabling further growth.” Alisha Moopen, Managing Director and CEO of Aster GCC business, expressed excitement about nearing closure and the opportunity to expand presence in Saudi Arabia and strengthen operations in UAE, Oman, and Qatar.
In the GCC, Aster plans to expand its Aster Pharmacy business in Saudi Arabia with 180 retail stores opening within the next 3-5 years. Additionally, Aster Sanad Hospital in Riyadh will expand bed capacity. In UAE, Medcare Royal Hospital, a 126-bed super specialty hospital in Al Qusais, is set to be launched, positioning itself as a destination for tertiary and quaternary care.