Aster Healthcare in talks to Sell India Business

Based on people familiar with the situation, Aster DM Healthcare promoters led by Azad Moopen have begun stake-sale talks with private equity firms such as Blackstone and KKR, among others. According to the sources, the promoters may even be willing to sell a controlling stake in their India-listed hospital chain in order to capitalise on the ongoing sectoral consolidation.

In seven countries in West Asia and India, Aster Healthcare operates 32 hospitals, 127 clinics, 521 pharmacies, 16 laboratories, and 189 patient experience centres. According to HSBC, it increased its facility count from 300 in 2017 to over 885 in FY23, including hospitals, clinics, pharmacies, and labs. India accounts for 25% of revenue in FY23 and 29% of ebitda.

The talks, preliminary in nature, are expected to gather pace once the Gulf business is separated from the India parent and 65% of that is sold to a consortium led by Dubai-based PE firm Fajr Capital at a $500 million valuation, as per reports.

Aster is “exploring a potential restructuring for segregation of the company’s business in Gulf Co-operation Council (GCC) region from its business in India”, it said in an exchange filing on July 5. “The company has engaged in discussions with various potential counterparties, including Fajr Capital. Such discussions continue to be ongoing.”