Fajr Capital and Alpha Holdings to acquire 65% of healthcare operator: A consortium led by state-backed Fajr Capital has inked an agreement with hospital chain Aster DM Healthcare to acquire a 65% stake in its GCC business for about USD 1.1 bn, Fajr Capital said in a statement. The acquisition will see Aster split its GCC firms from its Indian parent company.

The details: Aster is offloading 65% of its UAE business to a consortium comprising private equity firm Fajr Capital and Alpha Holdings for more than USD 1.1 bn. Aster’s approval to the stake sale is the culmination of almost a year of talks to sell its UAE businesses. Since the acquisition is subject to shareholder and regulatory approval in India, Aster expects to close the stake sale by March 2024.

Who will own what? Alpha GCC Holdings will own a 35% stake, while the Fajr Capital-led consortium will hold the remaining 30% of the 65% stake. The consortium also includes the UAE’s sovereign wealth fund, Emirates Investment Authority, Al Dhow Holding Co, Wafra International Investment Co and Saudi Arabian Hana Investment. The rest of the shares will be retained by Aster India.

What was said: “The strategic decision to segregate the India and GCC operations was based on the rationale to establish fair value for both entities, creating two pure-play geographically focused entities that are able to leverage the growth opportunities in their respective markets,” Dr. Azad Moopen, Founder and Chairman of Aster DM Healthcare said.

About Fajr Capital: Founded in 2008, Dubai-based Fajr Capital operates as an investment company. The firm focuses on investing in high-growth markets across the Middle East and Southeast Asia.

About Aster DM Healthcare: Founded in India in 1987 as a single clinic, Aster DM’s portfolio of healthcare businesses has since expanded in India and the Gulf. The healthcare giant’s operations in the Gulf include 15 hospitals, 118 clinics and 276 pharmacies across the UAE, Saudi Arabia, Qatar, Oman, Bahrain and Jordan.

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