MUMBAI : Aster DM Healthcare has agreed to sell its gulf business to its India promoters and Fajr Capital Advisors for $1.01 billion, the company said on Tuesday.
While sovereign-backed private equity Fajr will own 65% of the new entity, Alpha GCC Holdings Ltd, the promoter of Aster India will own 35%, at the close of the transaction.
The selling entity is Affinity Holdings Pvt Ltd, a wholly owned material subsidiary of Aster DM Healthcare, that operates the entities conducting business in the Gulf Cooperation Council (GCC) region.
Of the $1.01 billion, $903 million is payable at closing, while $98.8 million will be paid out subsequent to certain ‘contingent events’. These include an earnout of up to $70 million based on Ebitda achieved by the GCC business in the financial year ending 31 March 2024, the company said.
“As previously disclosed vide the disclosure made on July 24, 2023, the company had received requests from bidders during the bidding process for continued promoter participation in the GCC business to ensure its sustainability following the restructuring,” Aster said in a statement.
“The promoters have also expressed their interest in continuing to participate in the GCC business. The promoters have expressed their deep commitment to both the India and GCC geographies and shall continue to have a meaningful role both in GCC and India following the completion of the transaction,” it added.
The transaction is with a related party and done at arm’s length, the company said.
Aster DM Healthcare went public in February 2018 in an initial public offering raising ₹980 crore, selling its shares at ₹190 apiece. The company’s shares have since then risen, and ended Tuesday at Rs334.35 each.
Founded by Dr. Azad Moopen in 1987 as a single clinic, Aster DM’s portfolio of healthcare facilities comprises hospitals, clinics and retail pharmacies in GCC states; and multi-specialty hospitals and clinics in India.
Aster’s hospitals in India are located in Kochi, Kolhapur, Kozhikode, Kottakkal, Bengaluru and Hyderabad, and operated under the Aster Medcity, Malabar Institute of Medical Sciences (MIMS) and Aster Prime Hospital brands, according to its website.
True North invested in Aster DM in 2008, though it subsequently sold some stake in 2019. The company also counts PE firm Olympus Capital as an investor.
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Updated: 28 Nov 2023, 08:12 PM IST