Aster DM Healthcare declared that it has divided its operations into the Gulf Cooperation Council (GCC) and that it has sold the latter to Alpha GCC Holdings. The healthcare company filed a report stating that the Gulf business was sold for $1.01 billion.
The promoter/promoter group of Aster India will hold Alpha GCC Holdings, while the Middle Eastern private equity company Fajr Capital Advisors will oversee the funds. The business further stated that Wafra International Investment business, Hana Investment Company, an Olayan Financing Company subsidiary, Emirates Investment Authority, and Al Dhow Holding Company comprise the consortium led by Fajr Capital.
The buyer company is Alpha GCC Holdings Limited ("Buyer"). Following completion, the Promoter/Promoter Group of Aster India ("Promoters") and funds managed by Fajr Capital Advisors Limited will own a 35:65 shareholding ratio in the Buyer. The promoters of the company seek to acquire over 20% of the Buyer's shares; therefore, upon the conclusion of the transaction outlined in the Share Purchase Agreement, the Buyer will become a member of the promoter group," the company stated in a filing.
The advisors to the independent directors were AZB & Partners, while the sell-side counsel was provided by Moelis & Company and Credit Suisse. PwC, Allen & Overy LLP, and HSBC Bank Middle East Ltd. represented the Fajr Capital consortium.
Aster DM Healthcare's shares increased 14.84 percent on the announcement, closing at Rs 332.65, compared to a 52-week high of Rs 382. With a market capitalization (m-cap) of Rs 18,941.54 crore, the counter had turnover of Rs 11.64 crore.
With the intention of growing their respective footprints, the management teams of the GCC and India organisations would be distinct from one another.
As Aster's founder and chairman, Dr. Azad Moopen will continue to be in charge of the organisation's GCC and India divisions. The GCC company will see Alisha Moopen appointed to Managing Director and Group CEO, with Dr Nitish Shetty leading the India division.
“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. In India, we as Promoters, remain committed to our growth plans and hence had increased our stake to 42% earlier this year. Major institutional shareholders continue to remain invested, reflecting overall confidence in the Company’s India business model and go-to-market strategy spanning all segments of the healthcare space,” said Dr Moopen.
“GCC operations to seize a significant opportunity to unlock value through its geographic expansion, diversify revenue through targeting different economic segments”.Alisha Moopen