India's Aster mulls dividend payout from $1 bln Gulf demerger amid proxy firm pressure

Aster DM Quality Care

15/01/2024 11:51

BENGALURU, Jan 15 (Reuters) - India's Aster DM
Healthcare  ATRD.NS  plans to distribute to shareholders about
70%-80% of the $903 million it will get by selling its Gulf
business, the hospital chain said Monday, days after a proxy
advisory firm asked investors to veto the deal.
    Aster agreed, in November, to sell a majority stake in the
Gulf business to private equity firm Fajr Capital in a $1
billion deal to help focus on its India business, which some
investors considered undervalued.
    Last week, Institutional Investor Advisory Services asked
Aster shareholders to vote against the deal due to a lack of
clarity on how the company would use the sale proceeds,
according to local media reports.
    The company said on Monday it plans to use the proceeds to
pay shareholders between 110 rupees and 120 rupees per share as
dividends.
    The company does not pay a regular dividend.
    Aster, which derives 75% of its revenue from its Gulf
business, had said it would use the demerger proceeds to go on
an expansion spree in India.

 (Reporting by Nandan Mandayam in Bengaluru; Editing by Savio
D'Souza)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))