In exchange filing, Aster DM Healthcare said that the board approved the separation of Aster’s India and GCC businesses, subject to regulatory and corporate approvals including Aster India’s shareholders’ approval. The separation plan will unlock value for the shareholders by allowing both the India and GCC businesses to adopt a market-focused strategy and create sustained long-term growth, the company said.
Under the separation plan, a consortium led by Fajr Capital has entered into a definitive agreement to acquire a 65 per cent stake in the ownership of the GCC business, Aster DM Healthcare FZC. The Moopen family will continue to manage and operate the GCC business retaining a 35 per cent stake, on and from closing.
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The current market cap of the combined India and GCC business stands at ~$2.0 billion. The transaction values the GCC business at an enterprise value of $1.7 billion (Rs 13,540 crore), and an equity value of $1.0 billion (Rs 8,215 crore).
The company further said existing shareholders to remain with the listed Indian entity, Aster DM Healthcare upon successful completion of the proposed transaction, the company is desirous of declaring dividends to the shareholders of Aster DM Healthcare from the proceeds, subject to approvals required under law.
The GCC and India healthcare markets are distinct and have different growth dynamics, warranting different business strategies. With a population strength of 1.4 billion, India will remain a priority market in Aster DM Healthcare’s growth journey.
The company plans to ramp-up bed capacity in India by almost one-third, by adding more than 1,500 beds by FY27. In the GCC, Aster DM Healthcare FZC will bolster its expansion plans in key markets, such as the UAE and Saudi Arabia, while enabling greater access to quality and comprehensive healthcare across physical and digital channels.