Aster DM India-GCC Business Split Closure Nears, CEO Confirms

21 Mar, 2024

Aster DM India-GCC Business Split Closure Nears, CEO Confirms

Hospital chain Aster DM Healthcare has confirmed the imminent completion of the separation between its GCC and Indian businesses, along with the proposed investment in the former by a Dubai private equity firm. In November 2023, the company agreed to sell a 65 percent stake in its Gulf business to a Fajr Capital-led consortium for $1 billion, a plan endorsed by shareholders in January. With necessary approvals from Saudi Arabia’s General Authority for Competition secured by the consortium, all conditions outlined in the sales agreement have been fulfilled, as indicated in a statement published on the Bombay Stock Exchange.

Key partners have issued no objection certificates, and regulatory authorities in the GCC have been informed of the impending business separation. Dr Azad Moopen, the founder chairman, will retain a 35 percent stake in the GCC business, while existing shareholders remain with Aster DM Healthcare Ltd, the India-listed entity. Post-transaction, the company plans to distribute 70-80 percent of the $903 million proceeds from the Gulf business sale.

Aster aims to leverage the separation to bolster its presence in both regions, with CEO Alisha Moopen highlighting expansion plans in Saudi Arabia, the UAE, Oman, Qatar, and India. In the GCC, expansion includes significant growth in pharmacy and hospital services, while in India, Aster plans to add 1,500 beds by 2027, signaling substantial investment in healthcare infrastructure.