Aster's India-GCC business split, Fajr capital-led investment nears completion
The plan is to separate Aster’s India and GCC businesses to unlock long-term value
Dubai / Bangalore: Dubai-headquartered Aster DM Healthcare Limited announced 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 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 per cent stake in the Company’s GCC business. The company’s shareholders approved the plan in January 2024.
Dr. Azad Moopen, Founder and Chairman of 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 strengthen its presence in both geographies further."
As a part of the completion process, the Fajr Capital-led consortium said it had obtained the necessary approvals from Saudi Arabia’s General Authority for Competition (GAC). “All conditions precedent outlined in the SPA are now complete. No-objection certificates are required from key partners and have been received. 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 company said in a statement.
The integration of business operations in Qatar into the Transaction perimeter of Aster DM Healthcare FZC has also been completed. The Moopen family will continue to lead and operate the GCC business, retaining a 35 per cent stake in the buyer entity. Existing shareholders will remain with the listed Indian entity, Aster DM Healthcare Ltd.
In the GCC, the company plans to expand its Aster Pharmacy business in Saudi Arabia, with 180 retail stores set to open within the next 3-5 years. This would be alongside the expansion of Aster Sanad Hospital in Riyadh, with added bed capacity to serve a larger population segment, the company said. In UAE, the company is all set to launch Medcare Royal Hospital, a 126-bed super speciality hospital in Al Qusais.
Alisha Moopen, Managing Director and Group CEO of Aster GCC business said, “With most of the processes nearing closure and necessary approvals in place, we are almost at the closing of the transaction and ready to embark on the next stage of our growth journey, which would see us expand our presence in Saudi Arabia and further strengthen our footprint in UAE, Oman, and Qatar."