MUMBAI : Aster DM Healthcare has agreed to sell its golf business to its Indian promoters and Fajr Capital Advisors for $1.01 billion, the company said on Tuesday.
While sovereign-backed private equity Fajr will own 65% of the new entity, Alpha GCC Holdings Ltd, the promoter of Aster India will own 35%, at the end of the transaction.
The selling entity is Affinity Holdings Pvt Ltd, a wholly owned material subsidiary of Aster DM Healthcare, which operates the entities doing business in the Gulf Cooperation Council (GCC) region.
Of the $1.01 billion, $903 million is due at closing, while $98.8 million will be paid after certain “contingent events.” These include a gain of up to $70 million based on Ebitda achieved by the GCC business in the financial year ending March 31, 2024, the company said.
“As previously disclosed in the disclosure made on July 24, 2023, the company received requests from bidders during the bidding process for continued promoter participation in the GCC business to ensure its sustainability after the restructuring,” Aster said in a statement.
“The promoters have also expressed their interest to continue participating in the GCC business. The promoters have expressed their deep commitment to both India and GCC geographies and will continue to have a significant role in both GCC and India after the completion of the transaction,” it added.
The transaction is with a related party and done at arm’s length, the company said.
Aster DM Healthcare went public in February 2018 in an initial public offering ₹980 crore, selling its shares at ₹190 each The company’s shares have since risen, and ended Tuesday at Rs334.35 apiece.
Founded by Dr. Azad Moopen in 1987 as a single clinic, Aster DM’s portfolio of healthcare facilities comprises hospitals, clinics and retail pharmacies in GCC states; and multi-specialty hospitals and clinics in India.
Aster’s hospitals in India are located in Kochi, Kolhapur, Kozhikode, Kottakkal, Bengaluru and Hyderabad, and operate under the brands Aster Medcity, Malabar Institute of Medical Sciences (MIMS) and Aster Prime Hospital, according to its website.
True North invested in Aster DM in 2008, although it later sold some stake in 2019. The company also counts PE firm Olympus Capital as an investor.
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Updated: 28 Nov 2023, 20:12 IST
(tagsTo Translate)Aster India