UAE —Aster DM Healthcare, a prominent healthcare provider based in the United Arab Emirates (UAE), is reportedly considering the sale of a stake in its India business.
The company has initiated talks with renowned private equity groups such as Blackstone and KKR, among others, in pursuit of a potential deal, according to unnamed sources cited by the Economic Times (ET).
Led by Azad Moopen, the Aster promoters are open to the possibility of selling a controlling stake in their India-listed hospital chain, aiming to capitalize on the ongoing consolidation within the healthcare sector.
The move comes as Aster DM Healthcare recently confirmed discussions with Dubai-based Fajr Capital and other parties, exploring the potential carve-out of its Gulf business.
In a stock exchange filing, Aster stated, “The Company has engaged in discussions with various potential counterparties, including Fajr Capital. Such discussions continue to be ongoing.”
However, the filing emphasized that no disclosable event has occurred thus far, and Aster will adhere to the regulations of the Securities and Exchange Board of India (SEBI) regarding disclosures.
Reuters reported earlier that Fajr Capital, a private equity firm, is in exclusive talks to acquire a majority stake in Aster’s Gulf business, based on insights from two unnamed sources familiar with the matter.
Aster is allegedly looking to sell a 65 percent stake in its Gulf business to a consortium led by Fajr Capital at a valuation of US$500 million.
With 32 hospitals in West Asia and India, in addition to clinics, pharmacies, laboratories, and patient experience centers, Aster DM Healthcare is a key player in the healthcare industry.
According to the ET report, the discussions between Aster promoters and private equity firms are still in the preliminary stages and are expected to gain momentum once the Group’s Gulf business is separated from its India parent entity.
In the fiscal year 2023, Aster reported a revenue growth of 16 percent, amounting to US$1.46 billion, with a net profit of US$51.36 million.
The potential stake sale in Aster’s India business highlights the company’s strategic focus on sectoral consolidation and expansion opportunities.
As the healthcare landscape continues to evolve, such developments may have significant implications for the industry’s growth and the delivery of quality healthcare services in India.
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