Gulf consortium acquires 65% of Aster DM Healthcare’s GCC unit

Aster DM Healthcare Limited announced the separation of its business in the GCC and India into two independent entities.

Under the separation plan, a consortium led by Abu Dhabi Investment Council-backed private equity firm Fajr Capital acquired a 65% stake in Aster’s GCC arm. The company’s founders, the Moopen family, now retains a 41.88% stake in its Indian unit, alongside management and operating rights.

The deal was concluded, valuing the GCC business at an enterprise value of $1.7 billion (AED 6.2 billion), according to a company statement, which indicated that the 65% stake sale amounted to about $1.1 billion (AED 4 billion), as the company did not disclose the deal’s value.

The Fajr Capital-consortium includes the Emirates Investment Authority, Al Dhow Holding, Hana Investment Co. (a subsidiary of Olayan Finance), and Wafra International Investment Co., in addition to other regional and international investors.

In November 2023, Aster received board approvals to separate its businesses in the GCC and India and establish two separate healthcare companies that will benefit from strategic and financial resilience. The plan was also greenlit by its shareholders last January.

This transaction was subject to customary regulatory approvals and closing conditions, which were all met and completed, it underlined.

Provided that the Moopen family will retain operational control of the company, Founder Dr. Azad Moopen will remain as Chairman and Alisha Moopen will assume the position of Managing Director and CEO of Aster GCC.

In cooperation with the new shareholders, Aster GCC will begin implementing a regional expansion strategy. It will soon unveil Medcare Royal Hospital in Al Qusais, Dubai — a 126-bed super-specialty hospital that will serve as a world-class destination for tertiary and quaternary care that meets the needs of local and international patients.

Meanwhile, the Aster Pharmacy business in Saudi Arabia is poised for “substantial growth”, with 180 new pharmacies set to open over the next three to five years. In addition, Aster Sanad Hospital in Riyadh is set to expand its bed capacity.