Aster DM Healthcare concludes separation of India, Gulf businesses

Aster DM Healthcare

Aster DM Healthcare, on April 3, stated it has concluded the separation of its India and GCC businesses, under which a consortium of investors led by Fajr Capital, a sovereign-backed private equity firm, has acquired a 65 percent stake in Aster GCC, the company said in a statement.

Under the separation plan, the Moopen family has retained a 35 percent stake alongside management and operational rights, it added. In the Indian operations, the Moopen family continues to hold 41.88 percent stake, the healthcare firm stated.

Azad Moopen will remain the founder chairman, while Alisha Moopen will remain a director on the board of the company alongside serving as the managing director and group CEO of Aster GCC. "The Indian entity will be led by Nitish Shetty as CEO, who will focus on the growth of the India business, aimed at creating value for its shareholders," the company said.

"The transaction has now concluded, pursuant to which Affinity Holdings Ltd (a wholly-owned subsidiary of the company) has received a cash consideration of $907.6 million," it said.

In November 2023, Aster DM Healthcare obtained board approvals to separate its Gulf and India businesses.

The company also plans to add 1,700 beds by FY27 through the organic route and will further look for expansion through the inorganic route as well to be among the top 3 hospital chains in India. The capital allocation for this expansion is in the range of Rs 1,000 crore.

With inputs from PTI