Fajr Capital in talks for majority stake in Aster’s Gulf business
Fajr is in the final stages of due diligence and could close the deal soon, sources said
Dubai: Private equity firm Fajr Capital is in exclusive talks to acquire a majority stake in Aster DM Healthcare’s Gulf business, two sources with direct knowledge of the matter told Reuters.
Aster, based in the UAE and listed in Mumbai, began a sales process at the end of last year to demerge the Gulf business, which it had perceived as being undervalued by analysts and investors.
Dubai-based Fajr is in the final stages of due diligence and could close the deal soon, said the sources, declining to be named as the matter is not public. Fajr has also put together a consortium of other investors, the people said.
Aster did not immediately respond to a request for comment on Tuesday. Fajr declined to comment.
Aster runs 32 hospitals, 127 clinics and 521 pharmacies in India and the UAE. The company is separately in talks to sell a 30 per cent stake in its Indian business for about $300 million, Reuters reported in May.
Aster’s revenue grew 16 per cent to $1.46 billion in the fiscal year ended March 31, while its net profit stood at $51.36 million.
Its shares are up 38.4 per cent this year, trading at just under Rs320 rupees ($3.90).