Aster DM Healthcare Shareholders Approve $1 Billion GCC Business Separation and Stake Sale to Fajr Capital

24 Jan 2024 , 02:56 PM

Nearly 99.9% of shareholders approved resolutions for separating Aster DM Healthcare’s GCC business and the majority stake sale in the Gulf business to Fajr Capital in a $1 billion deal.

The vote on two resolutions, closed on January 22, saw 99.86% approval for the sale of the GCC business and 99.96% approval for the sale of a material subsidiary.

Dr. Azad Moopen, founder and chairman of Aster DM Healthcare, expressed gratitude for the strong shareholder support, noting their appreciation of the long-term value-unlocking opportunity in separating the two businesses.

In November, Aster DM approved the $1.01 billion sale of its Middle East (GCC) business to Alpha GCC Holdings Ltd.

Upon transaction completion, the buyer will join the promoter group as Aster India’s promoters plan to acquire over 20% of the buyer’s shareholding.

Promoters commit to managing both India and GCC entities, focusing on Aster DM Healthcare’s aggressive growth plans in the Indian healthcare market.

After the proposed transaction, the company aims to distribute 70-80% of the $903 million upfront consideration as a dividend to shareholders, ranging from Rs 110 to Rs 120 per share, contingent upon necessary legal approvals.

The company plans to strengthen its presence in India, adding 1,500 beds within 2-3 years, increasing the total bed capacity to over 6,000 beds. Currently, Aster operates in five states with a network of 19 hospitals, 13 clinics, 226 pharmacies, and 251 patient experience centers.

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