CHENNAI: Bengaluru-based Aster DM Healthcare Limited on Tuesday announced its decision to sell 65% stakes in its Gulf businesses ‑- Aster DM Healthcare FZC to a consortium of investors led by Fajr Capital in a deal valued at $1 billion.
Aster DM has separated its business in India and Gulf Cooperation Council (GCC) market into two standalone entities. It received board approvals from its subsidiary Affinity Holdings and approval from its board for the decision.
As per the company, current market cap of combined business stands at $2 billion. The transaction values the GCC business at an enterprise value of $1.7 billion (`13,540 cr) and equity value of $1billion (`8,215 cr). It expects the deal to close by March 2024. Aster DM Healthcare, established by Kerala-based Dr Azad Moopen, has 19 hospitals and other healthcare facilities spread across five southern states. In the Gulf, it has 15 hospitals, across the UAE, Saudi Arabia, Qatar, Oman, Bahrain and Jordan.
The consortium includes Emirates Investment Authority, Al Dhow Holding Company, Hana Investment Company and Wafra International Investment Company. As per the separation plan, both the India and GCC entities will be operated by separate management teams. Dr Azad Moopen will continue as the founder and Chairman of Aster overseeing both India and GCC entities. Alisha Moopen will be promoted to MD and Group CEO of the GCC business and Dr Nitish Shetty, the current CEO will remain CEO for India business. Moopen family will retain a 35% stake in the GCC Business.
Dr Azad Moopen said the decision was based on the rationale to establish fair value for both entities that are able to leverage growth opportunities in their respective markets. “In India, we as promoters remain committed to our growth plans and hence had raised our stake to 42% earlier this year. Major institutional shareholders continue to remain invested, reflecting confidence in the company’s India business model and go-to-market strategy spanning all segments of the healthcare space,” he said.
GCC Business
Dr Azad Moopen to continue as the founder and Chairman of Aster overseeing both India and GCC entities. Moopen family will retain a 35% stake in the GCC Business