Aster DM Healthcare to complete strategic separation and investment deal with Fajr Capital
Aster DM Healthcare Limited, a prominent integrated healthcare provider in the GCC (Gulf Cooperation Council) and India, is on the brink of completing a significant corporate restructuring that will see its India and GCC operations split into two independent entities. This move is aimed at unlocking the long-term value of both business units. In conjunction with this strategic separation, Aster DM has announced an impending investment in its GCC business by a consortium led by Fajr Capital, a sovereign-owned private equity firm based in the United Arab Emirates.
The decision to bifurcate the company’s operations received corporate nods in November 2023, with shareholder approval following in January 2024. This reorganization paves the way for Fajr Capital and its consortium to acquire a 65% stake in Aster DM’s GCC operations, signaling a new era of growth and expansion for the healthcare giant in one of the world’s most dynamic healthcare markets.
Key approvals for the transaction have been secured from the General Authority for Competition (GAC) in the Kingdom of Saudi Arabia, fulfilling all conditions precedent as outlined in the Sale and Purchase Agreement (SPA). Moreover, the integration of Aster DM Healthcare’s operations in Qatar into Aster DM Healthcare FZC’s transaction perimeter has been successfully concluded, marking a critical milestone towards the finalization of this transformative deal.
The Moopen family, the visionary founders behind Aster DM Healthcare, will retain a 35% stake in the GCC business, ensuring continuity of leadership and operational excellence. Existing shareholders will continue their association with the listed Indian entity, Aster DM Healthcare Ltd., which is poised for substantial growth in the Indian market.
Dr. Azad Moopen, Founder Chairman of Aster DM Healthcare, expressed optimism about the restructuring, stating, “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.”
In the GCC, Aster DM Healthcare has ambitious plans to expand its Aster Pharmacy business in Saudi Arabia, with 180 retail stores slated to open in the next 3-5 years. This expansion is part of a broader strategy to enhance healthcare access and quality across the GCC, including the launch of Medcare Royal Hospital in the UAE.
In India, the company is focused on expanding its hospital chain to be among the top three by FY27, with plans to add 1500 beds through a mix of brownfield and greenfield projects. This expansion includes significant investments in Trivandrum and Kasargod, alongside capacity increases in existing facilities, totaling an outlay of Rs. 850-900 crore.
This strategic restructuring and investment underscore Aster DM Healthcare’s commitment to innovation, quality healthcare delivery, and sustainable growth in both the GCC and Indian markets, setting a new benchmark in global healthcare services.