In order to split the hospital chain from its Indian parent, Aster DM Healthcare (ATRD.NS) has decided to sell a controlling interest in its Gulf operations to a regional investment group for $1 billion.
The year-long sale process, which began when some investors believed the company was undervalued, has come to an end with the transfer of a 65% interest to a group headed by private equity firm Fajr Capital.
In the fourth quarter of the fiscal year that ends in 2024, the sale is expected to close.
As per reports, the buyer would own 35:65 shares, with money handled by Fajr Capital Advisors Limited and controlled by the promoters of Aster India. The promoters pledge to remain involved in a significant capacity in the GCC and India even after the acquisition is completed.
The investor group also includes Saudi Arabian billionaire Olayan family’s Hana Investment, Al Dhow Holding Co., Wafra International Investment Co., and Emirates Investment Authority, the sovereign wealth fund of the United Arab Emirates.
Moopen Family, the promoter of Aster, will own the remaining share of the business.
The change will enable Aster to concentrate more on its operations in India, where it also intends to sell a thirty percent interest for approximately $300 million in order to fund its rapid growth.
The group’s flagship hospital, Aster Medcity in Kochi, was established in 2014 and is a 670-bed quaternary care facility situated on a 40-acre site.
With an IPO of INR 980 crore, Aster reportedly went public in February 2018.
Alisha Moopen, managing director of Aster’s Gulf business, quoted in a Reuters report saying, “I think there is a lot of opportunities for inorganic growth in India which we haven’t been able to pursue so actively because of this conflicting requirements and investment in capital requirements between the two regions.”
