Aster DM Healthcare Ltd. and Blackstone- and TPG-backed Quality Care India Ltd. will merge through a share swap agreement, the company announced on Friday.
The board approved the merger plan, whereby the company will initially acquire 1.94 crore shares, or 5% equity, of the unlisted Quality Care from Blackstone affiliate BCP Asia II TopCo IV Pte. and TPG Inc. arm Centella Mauritius Holdings Ltd. at Rs 445.8 per share, according to an exchange filing.
In exchange, Blackstone and TPG will be issued shares on a preferential basis worth Rs 849 crore. Over 1.8 crore shares will be allotted to Blackstone and TPG at an issue price of Rs 456.33.
BCP Asia II Topco IV Pte. will get 2.69%, and Centella Mauritius Holdings will secure a 0.9% stake in Aster DM after a preferential issue.
Based on the agreed swap ratio, Aster shareholders will hold 57.3%, and QCIL shareholders will hold 42.7% in the merged entity, which will be named Aster DM Quality Care Ltd. and led by the Moopen family.
The merged entity will be jointly controlled by Aster promoters and Blackstone, holding 24% and 30.7% ownership, respectively, a press release said.
Quality Care operates multi-speciality healthcare establishments across India and Bangladesh.
Merger Timeline
The share purchase deal will require approvals from the stock exchanges and the Competition Commission of India. The acquisition will be completed within 15 days of the date of the shareholder approval or the date of the CCI approval (whichever is later), the filing said.
After the initial share acquisition, QCIL will be merged into Aster by way of a scheme of amalgamation, subject to shareholder and regulatory approvals.
Aster expects the merger transaction to close by the third quarter of fiscal 2026, as per the statement.
Purpose Of Merger
The merger will have multiple benefits, including scale and financial resilience, diversification and potential for growth, and multiple synergies, including revenue synergies, supply chain synergies, and lower cost overheads, Aster DM said.
"Aster DM Quality Care will have a combined portfolio of four leading brands: Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare. The combined entity will have a network of 38 hospitals and 10,150+ beds spread across 27 cities, making it one of the top 3 hospital chains in India," the statement said.
Shares of Aster DM Healthcare closed 2.35% higher at Rs 499.95, compared to a 0.9% gain in the benchmark Nifty 50.
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