M&A

M&A

Aster DM Healthcare to sell 65% stake in Middle East business to PE consortium at $1-B valuation

Press Release  

Aster DM Healthcare, a publicly-listed integrated healthcare provider, is to spin out its GCC (Gulf Cooperation Council) business to a consortium of investors led by Fajr Capital, a sovereign-owned private equity firm headquartered in the UAE. The PE consortium will acquire a 65% stake in the GCC business at an equity valuation of USD 1 Billion (Enterprise Valuation of USD 1.7 Billion). The balance stake in the GCC business will be held by Aster's promoters, Dr. Azad Moopen and his family. Aster has 15 hospitals, 118 clinics and 276 pharmacies across the UAE, Saudi Arabia, Qatar, Oman, Bahrain and Jordan. The Fajr Capital-led consortium includes Emirates Investment Authority, Al Dhow Holding Company (the investment arm of AlSayer Group), Hana Investment Company (a subsidiary of Olayan Financing Company) and Wafra International Investment Company. EY and PwC provided independent valuation advice and ICICI Securities provided fairness opinion for the valuation guidance. Cyril Amarchand Mangaldas was Aster's lawyer on the transaction, while Baker & McKenzie LLP was the legal advisor to Aster's subsidiary. AZB & Partners were the advisors to independent directors. Moelis & Company and Credit Suisse acted as the sell-side transaction advisors. HSBC Bank Middle East Ltd., Allen & Overy LLP and PwC acted on behalf of the Fajr Capital consortium.