Aster completes separation of GCC and India units

Dubai's Fajr Capital leads acquisition of 65% stake in Aster GCC, valuing company at $1 billion

Aster DM Healthcare operates across the GCC, managing a network of 15 hospitals, 117 clinics and 285 pharmacies. Jeffrey Biteng / The National

Aster DM Healthcare, a Dubai-based operator of hospitals, clinics and a pharmacy chain, has finalised the separation of its Gulf and India business units and sold 65 per cent of its stake in its GCC arm to a consortium led by private equity firm Fajr Capital.

The transaction, which valued Aster GCC at about $1 billion, will enable the company to focus on its expansion plans in the GCC and India under independent entities, Aster said on Wednesday.

Azad Moopen will remain founder chairman and Alisha Moopen will serve as managing director and group chief executive of Aster GCC, with the Moopen family retaining a 35 per cent holding along with management and operational rights, it said.

Fajr Capital, based in the Dubai International Financial Centre, was joined by Al Dhow Holding, Hana Investment, Wafra International Investment and the Emirates Investment Authority – the sovereign wealth fund of the UAE federal government.

Aster GCC is planning an “ambitious” expansion plan across the Gulf, most notably in Saudi Arabia, the Arab world's biggest economy, and aims to improve healthcare access across its physical and digital channels, the company said.

Meanwhile, the Indian unit, which will be led by chief executive Nitish Shetty, has plans to add 1,700 beds and be among the top three hospitals in South Asia's biggest economy, Indian media reported on Wednesday.

Aster DM Healthcare was founded in 1987 and following the split, manages a network of 15 hospitals, 117 clinics and 285 pharmacies across the GCC.

The separation plan of Aster DM Healthcare – listed on both the Bombay Stock Exchange and the National Stock Exchange of India – was approved by its board in November 2023 as it sought flexibility to focus on respective demand for healthcare services in the GCC and India. Shareholders gave the green light to proceed in January.

“We are confident that [Fajr Capital's] demonstrated expertise will empower our expansion plans within GCC’s dynamic healthcare landscape, especially Saudi Arabia,” Azad Moopen, founder chairman of Aster DM Healthcare, said.

“Our next stage of growth … would see us expand our footprint in the GCC while strengthening our presence across physical and digital channels,” Alisha Moopen, managing director and group chief executive of Aster DM Healthcare GCC said.

“We are actively developing the right market strategy for Saudi Arabia for the expansion of our primary care and hospital businesses, supported by our new partners.”