Aster DM Healthcare To Split India, Gulf Businesses In A $1-Billion Deal

The sale is expected to be completed in the fourth quarter of FY24.

<div class="paragraphs"><p>(Source: Aster DM Healthcare website)</p></div>
(Source: Aster DM Healthcare website)

Hospital chain Aster DM Healthcare Ltd. will separate its India and gulf businesses in a transaction worth $1 billion.

The Moopen family-owned healthcare company's subsidiary Affinity Holdings Pvt. will transfer its shares in Aster DM Healthcare FZC—the Gulf unit—to promoter-owned Alpha GCC Holdings Ltd., according to an exchange filing.

Of the total amount, $903 million, subject to customary adjustments, is payable at the closing of the deal, and up to $98.8 million may be received subsequently, subject to certain contingent events, the filing said. This includes an earnout of up to $70 million based on Ebitda achieved by the GCC business for the financial year ending March 31.

After the deal, Alpha GCC Holdings will be 35% owned by the Moopens and 65% by private Fajr Capital Advisors Ltd.

"As previously disclosed vide the disclosure made on July 24, 2023, the company had received requests from bidders during the bidding process for continued promoter participation in the GCC business to ensure its sustainability following the restructuring," according to the exchange filing.

The sale is expected to be completed in the fourth quarter of FY24.

Shares of Aster DM Healthcare closed 1.48% lower at Rs 332.65 apiece on the NSE as compared to a 0.48% advance in the Nifty 50 before the announcement.