Aster DM Healthcare May Pay Rs 120 Per Share As Dividend Post Separation Of Gulf Business

Aster DM Healthcare on Monday said its board may distribute 70-80% of $903 million that it expects to garner from the separation of its India and Gulf businesses as dividend payout.

Following deliberations regarding future expansion plans, capex requirements, and cash reserves, the board is desirous to consider distribution of 70-80% of the upfront consideration of $903 million, as dividend to its shareholders in the range of Rs 110 to Rs 120 per share, the company said in a regulatory filing.

The proposed declaration of dividend by the company is subject to completion of the transaction, including receipt of shareholder approval for the transaction, it added.

In November last year, Aster's board approved to separate the India and GCC businesses into two distinct and standalone entities.

Aster DM Healthcare inked definitive agreements to hive off its Gulf business for a consideration of $1.01 billion.