UAE – A consortium led by Fajr Capital has entered into a definitive agreement to acquire a 65% stake in the ownership of Aster DM Healthcare FZC from its parent company, Aster DM Healthcare Ltd.

In an official note, Dr. Azad Moopen, Founder and Chairman of Aster DM Healthcare, said: “We are confident given their demonstrated expertise and are excited by their commitment to empowering our expansion plans within the GCC’s dynamic healthcare landscape.”

Notably, Fajr Capital has been selected by the board of Affinity as Aster DM Healthcare Ltd.’s trusted private equity partner to lead a consortium of investors to invest in the GCC business.

The Fajr Capital-led consortium comprises Emirates Investment Authority, Al Dhow Holding Company (the investment arm of AlSayer Group), Hana Investment Company (a subsidiary of Olayan Financing Company) and Wafra International Investment Company. 

Notably, the board of Affinity and its representatives who negotiated the transaction formed a positive view of the favorable valuation and other terms offered by the Fajr Capital-led consortium.

It is important to highlight that HSBC Bank Middle East Ltd., Allen & Overy LLP, and PwC acted on behalf of the Fajr Capital consortium.

The Moopen family, which currently owns a 35% stake in Aster’s GCC business, will retain their shares, on and from the closing of the proposed deal.

In his address, Mr. Iqbal Khan, Chief Executive Officer of Fajr Capital, commented: “The Moopen family has built a world-class company, with a rich legacy of delivering high-quality healthcare to millions of patients.”

Headquartered in the Dubai International Financial Centre, Fajr Capital is a sovereign-owned private equity firm situated in the United Arab Emirates.

Fajr Capital has a diverse portfolio consisting of businesses operating in over 10 key markets in the Middle East and North Africa (MENA) and the Association of South East Asian Nations (ASEAN).

These MENA and ASEAN markets include Brunei Darussalam, Egypt, Malaysia, Oman, the Kingdom of Saudi Arabia, Turkmenistan, and the United Arab Emirates.

Speaking on the growing demand for integrated healthcare services across the Gulf region, Mr. Iqbal Khan said: “We are grateful to the promoter Moopen family for their trust. We look forward to working with them, our consortium partners, and the management team to accelerate Aster’s ambitions through continued investment, innovation, and expansion.”

Amidst a transformation, Aster is set to split the India and GCC businesses into two distinct and standalone entities, subject to regulatory and corporate approvals including Aster India’s shareholders’ approval.

Upon completion of the separation of the India and GCC businesses, Aster DM Healthcare FZC will bolster its expansion plans in key markets such as the UAE and the Kingdom of Saudi Arabia.

Aster DM Healthcare FZC will also benefit from a dedicated investor base that will aid future growth in the Indian and the GCC markets respectively.

As part of this deal, Dr. Azad Moopen will continue in his role as the Founder and Chairman and will oversee both India and GCC businesses.

Ms. Alisha Moopen will be promoted to the position of Managing Director and Group CEO of the GCC business to lead a long-term strategy that will unlock value as a pure-play GCC operating company.

Ms. Alisha is well-suited to take the lead on Aster’s ambitious growth plan and to oversee the next phase of the parent company’s growth trajectory in the GCC region.

Commenting on the elevation, Alisha said: “The segregation will enable our GCC operations to seize a significant opportunity to unlock value through its geographic expansion, diversify revenue through targeting different economic segments while expanding into tertiary care and digital health.”

Meanwhile, Dr. Nitish Shetty will maintain his executive role as the Chief Executive Officer of the Aster business in India.

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