Hospital chain Aster DM to sell majority stake in Gulf business for 1 billion dollars

The investor group also comprises UAE sovereign wealth fund Emirates Investment Authority, Al Dhow Holding Co, Wafra International Investment Co and Saudi Arabian billionaire Olayan family’s Hana Investment.

The move will help Aster focus more on its India business, in which it also plans to sell a 30% stake for about $300 million as it plans to go on an expansion spree.

Alisha Moopen, managing director of Aster’s Gulf business, told Reuters that the stake sale gives the company more flexibility to pursue growth.

“I think there is a lot of opportunities for inorganic growth in India which we haven’t been able to pursue so actively because of this conflicting requirements and investment in capital requirements between the two regions,” Moopen said.

Aster DM currently operates 32 hospitals, 127 clinics and 521 pharmacies in India and the UAE. Shares of Aster DM closed down 1.48%, valuing the company at about $2 billion.

The company also plans to scale up expansion in Saudi Arabia, planning to open 180-200 pharmacies in the next four years, Moopen said.

Reuters, in July, reported Aster confirming it was in talks with Fajr and other parties as part of exploring a potential carve-out of its Gulf unit.