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Dubai-based hospital, clinic, and pharma operator Aster DM Healthcare has finalized the separation of its Gulf and India business units, selling stakes in each unit, it said in a statement. The transactions are part of a company strategy to expand in the GCC and India under independent entities, and saw Aster Aster sell 65% of its stake in its GCC arm to a consortium led by Abu Dhabi Investment Council-backed private equity firm Fajr Capital, and including Al Dhow Holding, Hana Investment, Wafra International Investment, and the Emirates Investment Authority.
Background: The company agreed to sell a stake in its Gulf division for USD 1.1 bn to the consortium back in November 2023. Aster additionally agreed to give up a 30% stake in its India business for USD 300 mn, Reuters previously reported. The company’s founders, the Moopen family, now retains a 41.88% stake in its Indian unit, according to the statement.
What’s next for Aster’s GCC unit? The transaction values the GCC unit at approximately USD 1 bn, reports the National. Founding chairman Azad Moopen and managing director Alisha Moopen will lead the company’s remaining 35% stake in the unit.
Expansion in the Kingdom next… and an IPO? Aster plans to use Fajr Capital’s expertise to help it expand its physical and digital footprint in the GCC market, with a specific market strategy set for Saudi Arabia. Aster is also mulling a dual listing of the unit in Saudi Arabia and the UAE sometime in the next three to five years,
Aster’s India unit: Following the sale, Aster’s Indian unit, led by CEO Nitish Shetty, will add 1.7k beds, in a bid to become one of the top three hospitals in South 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. Following the split, the healthcare giant’s operations in the Gulf include 15 hospitals, 117 clinics, and 285 pharmacies.
ADVISORS- Our friends at HSBC Middle East are sell-side advisors on the spinoff of the GCC business alongside Moelis & Company and Credit Suisse. You can check out the investor presentation for the spinoff here (pdf).
