Aster DM Healthcare confirms talks with Fajr Capital, others on Gulf business

Aster DM Quality Care

05/07/2023 07:06

DUBAI, July 5 (Reuters) - Aster DM Healthcare  ATRD.NS 
on Wednesday confirmed that it was in discussions with Fajr
Capital, as well as other parties, as part of exploring a
potential carve-out of its Gulf business.
    Reuters reported on Tuesday that private equity firm Fajr is
in exclusive talks to buy a majority stake in Aster's Gulf
business, citing two sources with direct knowledge of the
matter.
    "The Company has engaged in discussions with various
potential counterparties, including Fajr Capital. Such
discussions continue to be ongoing," Aster said in an exchange
filing.
    The United Arab Emirates-based healthcare services provider
added that there was "no disclosable event" to date, and that it
has made and will continue to make disclosures according to the
Securities and Exchange Board of India's regulations.
    Dubai-based Fajr is in the final stages of due diligence and
could close the deal soon, the sources said, adding Fajr has
also put together a consortium of other investors.
    Mumbai-listed Aster began a sales process at the end of last
year to demerge the Gulf business, which it had perceived as
undervalued by analysts and investors.
    Aster runs 32 hospitals, 127 clinics and 521 pharmacies in
India and the United Arab Emirates. The company is separately in
talks to sell a 30% stake in its Indian business for about $300
million, Reuters reported in May.
    Its revenue grew 16% to $1.46 billion in the fiscal year
ended March 31, while its net profit stood at $51.36 million.

 (Reporting by Yousef Saba; Editing by Rashmi Aich)
 ((Yousef.Saba@thomsonreuters.com; +971562166204; https://twitter.com/YousefSaba))