Liquidity Events
Care Hospitals to merge with Aster DM to create 3rd largest hospital chain
Quality Care India Limited ( Care Hospitals ), backed by PE firms Blackstone and TPG, is to merge with publicly listed hospital chain operator Aster DM Healthcare Limited. The merged listed entity will be named Aster DM Quality Care Limited and will have a combined network of 38 hospitals and 10,150+ beds spread across 27 cities making it one of the top 3 hospital chains in India.The Merged Entity will be 24.0% owned by Aster's promoters and 30.7% by Blackstone, with the balance 45.3% being held by public and other shareholders.Ahead of the merger, Aster shall purchase 5% stake in Care Hospitals from Blackstone and TPG via a primary share issuance (equivalent to a 3.6% stake in Aster). Post this initial share acquisition, Care will be merged into Aster by way of a scheme of amalgamation.Moelis & Company and Advay Capital acted as financial advisors to Aster, with Kotak Investment Banking as corporate advisor and Cyril Amarchand Mangaldas acting as its legal advisors. Blackstone and TPG (as key shareholders in Care Hospitals), were advised by NovaaOne Capital as their financial advisor and Trilegal and JSA acting as legal advisors. PwC recommended the swap ratio as an independent registered valuer and ICICI Securities provided the fairness opinion on the swap ratio.
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