Competition Commission Okays Merger Between Aster DM Healthcare And Quality Care India
After the merger, Aster will be renamed Aster DM Quality Care Ltd, in which existing shareholder Centella will have less than 10% non-controlling stake.
The Competition Commission of India has approved a proposed merger between Aster DM Healthcare Ltd. and Quality Care India Ltd.
The transaction also involves private equity investors BCP Asia II TopCo IV Pte. and Centella Mauritius Holdings Ltd., who are existing investors in Quality Care India.
The proposed transaction includes the proposed merger of Quality Care India into Aster DM Healthcare by way of a scheme of amalgamation, the regulatory body’s press release stated.
It added that after the merger, Aster will be renamed Aster DM Quality Care Ltd.
However, prior to the merger, Aster shall purchase a 5% stake in Quality Care from BCP Asia II TopCo IV and Centella Mauritius Holdings.
This is in consideration of a primary share issuance by Aster, the statement said.
According to the scheme, existing shareholders of Quality Care India—Centella, BCP and certain minority shareholders—are proposed to hold a certain stake in the merged entity.
However, Centella will have less than a 10% stake and these would be without any control rights.
Aster has 19 hospitals with 4,867 beds, 13 clinics, 215 pharmacies, and 232 labs. It also has patient experience centres across six states in India.
As for the unlisted Quality Care India, its network includes 26 healthcare centres operating over 5,150 beds across 14 cities. And its team of over 2,500 doctors offers over 30 medical specialities.
Shares of Aster DM Healthcare Ltd. closed 2.26% lower at Rs 489.50 apiece on the BSE, compared to a 2.10% advance in the benchmark Sensex.
