Aster DM Healthcare seals deal for sale of GCC Business for $1 bn; Fajr Capital roped in

DM Healthcare

Dr Azad Moopen-led Aster DM Healthcare has approved the sale of its Middle East or GCC (Gulf Co-Operation Council) business to Alpha GCC Holdings Ltd for around $1.01 bn, according to an exchange disclosure by the firm.

The buyer, Alpha GCC Holdings, will be owned by the promoter/ promoter group of Aster India and funds managed by Middle East private equity firm Fajr Capital Advisors Limited in the shareholding ratio of 35:65, respectively, at the closing of the transaction.

On September 20, 2022, Moneycontrol was the first to report that Aster DM Healthcare had launched a big-bang internal rejig exercise to unlock value and had tapped Gulf funds and sovereign funds to sell stakes in its carved-out Middle East business. The report also said that investment banks Credit Suisse and Moelis were acting as advisors.

Since the Moneycontrol newsbreak on September 20, 2022, the stock price of Aster DM Healthcare has risen by 33 percent in anticipation of a deal announcement.

The exchange announcement added, "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. 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."

Post the completion of the transaction contemplated under the share purchase agreement, the buyer will qualify as a member of the promoter group since the promoters of the company intend to acquire over 20% shareholding in the buyer, the announcement added.

( This is a breaking news story and will be updated shortly)