Aster DM Healthcare Ltd, a leading healthcare provider, has announced a pivotal move in its corporate strategy, receiving overwhelming shareholder support for the separation of its GCC business from its operations in India. The decision, which was finalized following a vote that closed on January 22, saw an astounding 99.9 percent of shareholders in favor of the transaction.
The proposed separation and sale involve transferring a majority stake of Aster’s Gulf business to private equity firm Fajr Capital, in a deal valued at $1 billion. This significant development reflects the shareholders’ confidence in the long-term value and potential of the company’s two distinct business entities.
Dr. Azad Moopen, founder and chairman of Aster DM Healthcare, expressed gratitude for the shareholders’ strong support and trust in the company’s vision. “Investors too have shown patience and trust in the company throughout this period. As disclosed earlier, we are looking to declare previously announced dividend soon upon relevant approvals being obtained upon closing of the transaction,” Dr. Moopen stated.
In November last year, Dubai-based Aster DM approved the sale of its GCC operations to Alpha GCC Holdings Ltd. Following the transaction’s closure, the ownership structure will be divided between Aster India’s promoters and Fajr Capital Advisors, managing the fund in a 35:65 ratio.
Dr. Moopen highlighted the strategic impact of the transaction, stating that it would create two geographically focused entities, each with its own capital allocation policy. He assured that the promoters remain committed to managing both the India and GCC businesses as before.
Upon the completion of the proposed transaction, Aster DM Healthcare plans to distribute 70-80 percent of the $903 million upfront consideration as a dividend to its shareholders, amounting to about ₹110 to ₹120 per share, subject to necessary legal approvals.
The transaction’s closure is contingent upon fulfilling certain conditions, which are currently in the advanced stages of completion.
Looking ahead, Aster DM Healthcare is poised for significant expansion in the Indian healthcare market, which serves a population of 1.4 billion. With aggressive growth plans, the company aims to be among the top three integrated healthcare providers in India. Over the next 2-3 years, Aster DM plans to add 1500 beds, increasing its total bed capacity to over 6000. Currently, Aster operates across five states in India with a network of 19 hospitals, 13 clinics, 226 pharmacies, and 251 patient experience centers.
This strategic move by Aster DM Healthcare marks a significant milestone in the company’s growth trajectory, potentially reshaping its market presence and enhancing shareholder value.
