Aster DM Healthcare Limited, one of the largest and fastest growing integrated healthcare providers in the GCC and India, has announced that the separation of its India and GCC businesses and the proposed investment in the company’s GCC business by a consortium of investors led by Fajr Capital, a sovereign-owned private equity firm headquartered in the UAE, is nearing imminent completion.

In November 2023, corporate approvals were received to separate the company’s India and GCC businesses into two distinct and stand-alone entities to unlock long-term value. Under the separation plan, a Fajr Capital-led consortium entered into a definitive agreement to acquire a 65 percent stake in the company’s GCC business. The plan was approved by the company’s shareholders in January this year.

As a part of the completion process, the Fajr Capital-led consortium has obtained the necessary approvals from Saudi Arabia’s General Authority for Competition. The integration of business operations in Qatar into the transaction perimeter of Aster DM Healthcare FZC has also been successfully completed.

The Moopen family will continue to lead and operate the GCC business retaining a 35 percent stake in the buyer entity. Existing shareholders will continue to remain with the listed Indian entity, Aster DM Healthcare Ltd.

Dr. Azad Moopen, founder and chairman, Aster DM Healthcare, said: “The separation of Aster’s India and GCC businesses will unlock the value and potential of both businesses and provide the needed impetus for the company to further strengthen its presence in both geographies. We are very near to closure and excited to embark on the next stage of growth.”

Alisha Moopen, managing director and group CEO, Aster GCC business, said: “With most of the processes near closure and necessary approvals in place, we are almost at the closure of the transaction and ready to embark on the next stage of our growth journey, which would see us expand our presence in Saudi Arabia and further strengthen our footprint in UAE, Oman and Qatar. We are delighted to have Fajr Capital and its consortium partners in our journey and thankful to the authorities for their continued support.”

In the GCC, the company has plans to expand its Aster Pharmacy business in Saudi Arabia with 180 retail stores set to open within the next three to five years. This would be alongside the expansion of Aster Sanad Hospital in Riyadh with added bed-capacity to serve a larger population segment. 

In the UAE, the company is all set to launch Medcare Royal Hospital, a 126-bed super specialty hospital in Al-Qusais, positioned to emerge as the destination for tertiary and quaternary care in a luxury setting, for local and international patients.