According to media reports, the private equity firm Aster DM Healthcare, which has its headquarters in the United Arab Emirates (UAE), is in discussions to sell a stake in its India business to private equity organizations such as Blackstone and KKR.
According to an article published in Economic Times, which cited unnamed sources, the company, headed by Dr. Azad Moopen, currently has the goal of capitalizing on the ongoing sectoral consolidation.
According to the publication, preliminary talks between Blackstone and Dr. Azad Moopen have concentrated on the idea of reverse combining the India portfolio of Care Hospitals with the listed India firm.
The report comes after Aster DM Healthcare announced that it was in conversations over the separation of its GCC company and its India business with Fajr Capital, which is based in Dubai, and other parties. The discussions were taking place as part of the separation.
The company stated in a report to the Bombay stock exchange that “such conversations continue to be continuing” and that “no disclosable event pursuant to the LODR (listing obligations and disclosure requirements) regulations has happened as on date.” LODR stands for “listing obligations and disclosure requirements.”
Reuters also published an article stating that private equity firm Fajr is reportedly in exclusive negotiations to purchase a majority share in Aster’s Gulf business.
Aster Healthcare runs medical facilities in seven countries in West Asia and India. These facilities include 189 patient experience centres, 521 pharmacies, 16 laboratories, and 32 hospitals.
In the fiscal year that concluded on March 31, 2023, the healthcare group’s sales increased by 16% to a total of USD 1.46 billion, while the company’s net profit came in at USD 51.36 million.
Also, senior technology leader Sreeni Venugopal has joined Aster DM Healthcare as the India CIO and CISO, where he would be responsible for driving the company’s technology strategy and information security initiatives.