AsterDM Healthcare’s separation of India and GCC business to wrap up

Aster DM Healthcare Ltd has announced that the separation of its India and GCC businesses and the proposed investment in the company’s GCC business by Fajr Capital, a sovereign-owned private equity firm headquartered in the UAE, is nearing completion.

The company received corporate approvals to separate the businesses into two distinct and standalone entities in November 2023.

Under the separation plan, a Fajr Capital-led consortium entered into a definitive agreement to acquire a 65 per cent stake in the company’s GCC business, which shareholders approved in January 2024.

As a part of the completion process, the Fajr Capital-led consortium has obtained the necessary approvals from the Kingdom of Saudi Arabia’s General Authority for Competition (GAC). All conditions precedents outlined in the SPA are complete, and the company informed the stock exchanges.

Upon successful transaction completion, the company intends to declare a substantial portion of the proceeds as dividends to its shareholders, subject to approvals.

Dr. Azad Moopen, Founder Chairman of Aster DM Healthcare said, “The separation of Aster’s India and GCC businesses will unlock the value and potential of both businesses and provide the needed impetus for the company to further strengthen its presence in both geographies. We are very near to closure and excited to embark on the next stage of growth.”

Alisha Moopen, Managing Director and CEO, Aster GCC business said, “We are almost at the closure of the transaction and ready to embark on the next stage of our growth journey which would see us expand our presence in Saudi Arabia and further strengthen our footprint in UAE, Oman and Qatar. We are delighted to have Fajr Capital and its consortium partners in our journey and thankful to the authorities for their continued support.”

In the GCC, the company plans to expand its Aster Pharmacy business in Saudi Arabia, with 180 retail stores set to open in the next 3-5 years.

The stock rose 2.98 per cent on the NSE to end at ₹441.10.