Aster DM Healthcare Splits GCC, India Entities, Secures Investment By Fajr Capital Consortium

Aster DM Healthcare Limited, a multinational integrated healthcare provider, has announced the successful separation of its GCC (Gulf Cooperation Council) and India businesses into two separate entities.

Under the separation plan, a consortium of investors led by Fajr Capital, a sovereign-backed private equity firm, has acquired a 65% stake in Aster GCC, while the Moopen family retains a 35% stake alongside management and operational rights. The transaction, which valued the GCC business at approximately US$1billion, has now been concluded.

Founded in 1987 by Dr. Azad Moopen, Aster started as a single clinic in Dubai, UAE, with the goal of making high-quality healthcare accessible to every patient. Over the years, it has become one of the most trusted healthcare brands in the GCC and India. Aster's GCC network includes 15 hospitals, 117 clinics, and 285 pharmacies across the UAE, KSA, Oman, Qatar, and Bahrain. The company operates under three brands: Aster, Medcare, and Access.

The decision to separate the GCC and India businesses was made in November 2023, with board approvals obtained to establish two distinct healthcare champions that can better meet the priorities of patients and focus on the growing demand in their respective markets. Shareholders approved the plan in January 2024. The transaction was subject to regulatory approvals and closing conditions, all of which have been satisfied and concluded.

Dr. Azad Moopen will continue as the Founder Chairman, and Alisha Moopen will serve as the Managing Director and Group CEO of Aster GCC. The Moopen Family will retain operational control of the company.

The Fajr Capital-led consortium includes Emirates Investment Authority, Al Dhow Holding Company, Hana Investment Company, and Wafra International Investment Company, among other regional and international investors. Alongside the new shareholders, the Moopen family and Aster GCC's management team will embark on an ambitious regional expansion strategy.

The company will soon unveil Medcare Royal Hospital, a 126-bed super specialty hospital in Al Qusais, UAE, that will cater to local and international patients. Saudi Arabia's Aster Pharmacy business is also set for substantial growth, with plans to open 180 new retail stores within the next 3-5 years. Additionally, Aster Sanad Hospital in Riyadh will expand its bed capacity to serve a larger population segment.

Dr. Azad Moopen expressed his enthusiasm for the separation, highlighting the tremendous growth potential of the GCC business. He stated that partnering with Fajr Capital and its consortium will empower their expansion plans in the GCC's dynamic healthcare landscape, particularly in Saudi Arabia.

Fajr Capital's CEO, Mr. Iqbal Khan, also expressed excitement about the partnership, emphasizing the importance of the healthcare sector in the regional economy. He commended Aster for its strong market presence, exceptional workforce, and commitment to delivering high-quality healthcare. Khan looks forward to working with Dr. Azad, Alisha, and the Moopen family to unlock Aster's potential in the GCC.

Alisha Moopen, Managing Director and Group CEO of Aster DM Healthcare GCC, shared her excitement about the next stage of growth. She outlined their plans to expand their footprint in the GCC, strengthen their presence across physical and digital channels, and meet the evolving healthcare needs of patients and customers. Alisha also mentioned their focus on developing a market strategy for Saudi Arabia's primary care and hospital businesses, with support from their new partners.Various firms provided advice and guidance throughout the transaction.

EY and PwC provided independent valuation advice, and ICICI Securities provided a fairness opinion for the valuation guidance of the company. Moelis & Company and Credit Suisse acted as sell-side advisors, while Baker & McKenzie LLP and Cyril Amarchand Mangaldas served as legal advisors. HSBC Bank Middle East Ltd., Allen & Overy LLP, and PwC represented the Fajr Capital consortium.

Aster DM Healthcare's successful separation of its GCC and India businesses marks an important milestone in its journey as a leading healthcare provider. With the support of a consortium led by Fajr Capital, Aster GCC is well-positioned to expand its services and continue delivering high-quality healthcare to patients across the region.