News
Aster DM Healthcare Completes Separation: Moopen family to retain 35% stake in Aster GCC, 41.88% in India operations
Aster DM Healthcare Completes Separation: Moopen family to retain 35% stake in Aster GCC, 41.88% in India operations
![]()
By eHealth Network - 04 April 2024
In Short
Aster DM Healthcare has completed the separation of its India and GCC businesses, with a consortium led by Fajr Capital acquiring a 65% stake in Aster GCC, while the Moopen family retains 35% and 41.88% stakes in GCC and India operations respectively. Affinity Holdings Limited received $907.6M as part of the transaction. The company plans to add 1700 beds by FY27, focusing on brownfield and greenfield projects, with a capital allocation of around Rs 1000 crore. Dr. Azad Moopen remains Founder Chairman, Alisha Moopen as Managing Director of Aster GCC, and Dr. Nitish Shetty as CEO of Aster DM Healthcare, India.
Aster DM Healthcare, a leading integrated healthcare provider, has announced the successful completion of the separation of its India and GCC (Gulf Cooperation Council) businesses. This strategic move, aimed at unlocking long-term investor value and establishing fair value for both entities, marks a significant milestone in the company’s growth trajectory.
Under the separation plan, a consortium of investors led by Fajr Capital, a sovereign-backed private equity firm, has acquired a 65% stake in Aster GCC, with the Moopen family retaining a 35% stake alongside management and operational rights. Meanwhile, in the Indian operations, the Moopen family will continue to hold a 41.88% stake.
As part of the transaction, Affinity Holdings Limited, a wholly-owned subsidiary of Aster DM Healthcare, has received a cash consideration of $907.6 million. This move follows the board approvals obtained in November 2023 and the subsequent shareholder approval in January 2024.
Looking ahead, Aster DM Healthcare plans to expand its operations significantly. It aims to add 1700 beds by FY27 through organic and inorganic routes, with a focus on both brownfield and greenfield projects. Expansion plans include upcoming projects such as Aster Capital in Trivandrum and Aster MIMS Kasargod, alongside increasing bed capacity in existing hospitals. The company also eyes potential markets like Maharashtra and Uttar Pradesh, allocating approximately Rs 1000 crore for this expansion.
Dr. Azad Moopen, Founder Chairman of Aster DM Healthcare, emphasized the promising outlook of the Indian healthcare market. He stated, “Our efforts will be to dynamically increase our footprint in India, aiming to emerge as one of the top three integrated healthcare providers in the country.”
Alisha Moopen, Managing Director and Group CEO of Aster GCC business, expressed excitement for the growth journey ahead, highlighting the significant potential in both geographies.
Dr. Nitish Shetty, CEO of Aster DM Healthcare, India, underscored the rapid and sustainable growth expected in the Indian healthcare market, outlining plans for expansion over the next three years.
The transaction received independent valuation advice from EY and PwC, with ICICI Securities providing fairness opinion. Moelis & Company and Credit Suisse acted as sell-side advisors, with legal advisory provided by Baker & McKenzie LLP and Cyril Amarchand Mangaldas. Advisory services to independent directors were provided by AZB & Partners, while HSBC Bank Middle East Ltd., Allen & Overy LLP, and PwC acted on behalf of the Fajr Capital consortium.
The completion of the separation underscores Aster DM Healthcare’s commitment to delivering quality healthcare services and enhancing its presence in both the GCC and Indian markets.
Like
Dislike
Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter , Instagram.
"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!
