Aster DM Healthcare, a healthcare company based in the UAE, is considering selling a stake in its India business. The company has initiated talks with private equity groups such as Blackstone and KKR, among others, for a potential deal. The promoters of Aster, led by Azad Moopen, are even open to selling a controlling stake in their India-listed hospital chain to take advantage of the ongoing consolidation in the sector.
This news follows Aster DM Healthcare’s recent confirmation that it is in discussions with Dubai-based Fajr Capital and other parties regarding a potential carve-out of its Gulf business. The company stated in a stock exchange filing that it is engaged in discussions with various potential counterparties, including Fajr Capital, but emphasized that there have been no disclosable events thus far. Aster will continue to make disclosures according to the regulations of the Indian market regulator, Securities and Exchange Board of India.
Reuters reported earlier that Fajr Capital, a private equity firm, is in exclusive talks to acquire a majority stake in Aster’s Gulf business, according to two unnamed sources with direct knowledge of the matter. Aster is reportedly looking to sell a 65 percent stake in its Gulf business to a consortium led by Fajr Capital, with a valuation of $500 million.
Aster DM Healthcare operates 32 hospitals in West Asia and India, in addition to clinics, pharmacies, laboratories, and patient experience centers. The discussions between Aster’s promoters and the private equity firms are currently at a preliminary stage and are expected to gain momentum once the company’s Gulf business is separated from its India parent.
In the financial year 2023, Aster’s revenue increased by 16 percent to $1.46 billion, and its net profit amounted to $51.36 million.