Aster DM Healthcare shareholders approve proposal to hive off Gulf biz

Hospital chain Aster DM Healthcare on Tuesday said its shareholders have approved the proposal to hive off its Gulf business in a deal valued at $1.01 billion.

The proposed resolutions were passed with the requisite majority by shareholders on January 22, the company said in a regulatory filing.

Over 99 per cent of the votes polled were in favour of the deal, it added.

On November 28 last year, Aster DM Healthcare announced that it would separate its India and Gulf businesses by way of a deal worth over $1 billion.

The company stated that it has received approval from its board and subsidiary Affinity Holdings Pvt Ltd to separate the India and GCC businesses into two distinct and standalone entities.

Under the separation plan, Affinity entered into a definitive agreement with a consortium of investors led by Fajr Capital, a private equity firm headquartered in the UAE, to invest in Aster's GCC business.

Upon completion, the separation of the India and GCC businesses will establish two distinct regional healthcare entities that will benefit from the strategic and financial flexibility to focus on growing market demand and the priorities of patients, the company had stated.

Both the India and GCC entities will be operated by separate dedicated management teams and benefit from a dedicated investor base that will aid future growth in the Indian and GCC markets, respectively, both of which hold significant growth potential.

In India, Aster has a presence in five South Indian states through 19 hospitals, 13 clinics, 226 pharmacies and 251 patient experience centres.

In the Gulf, Aster has 15 hospitals, 118 clinics and 276 pharmacies across the UAE, Saudi Arabia, Qatar, Oman, Bahrain and Jordan.

Shares of Aster DM Healthcare on Tuesday ended 1.99 per cent down at Rs 425.20 apiece on the BSE.