Fajr Capital in talks for majority stake in Aster's Gulf business - sources

Aster DM Quality Care

04/07/2023 09:27

By Hadeel Al Sayegh
       DUBAI, July 4 (Reuters) - 
    Private equity firm Fajr Capital is in exclusive talks to
acquire a majority stake in Aster DM Healthcare's Gulf business,
two sources with direct knowledge of the matter told Reuters.
    Aster, based in the United Arab Emirates and listed in
Mumbai  ATRD.NS , began a sales process at the end of last year
to demerge the Gulf business, which it had perceived as being
undervalued by analysts and investors. 
    Dubai-based Fajr is in the final stages of due diligence and
could close the deal soon, said the sources, declining to be
named as the matter is not public. Fajr has also put together a
consortium of other investors, the people said.
        Aster did not immediately respond to a request for
comment on Tuesday. Fajr declined to comment.
    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. 
    Aster's revenue grew 16% to $1.46 billion in the fiscal year
ended March 31, while its net profit stood at $51.36 million.
    Its shares are up 38.4% this year, trading at just under 320
rupees ($3.90).


    

($1 = 81.9750 Indian rupees)

 (Reporting by Hadeel Al Sayegh: Editing by Emma Rumney)
 ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))