The consideration receivable from the transaction is $1.001 billion of which $903 million, subject to customary adjustments, is payable at closing and upto $98.8 million may be received subsequently subject to certain contingent events. This includes an earnout of upto $70 million based on EBITDA achieved by the GCC business for the financial year ending 31 March 2024.

The company expects the transaction to close by March 2024.

Alpha GCC Holdings is the buyer entity and at completion, the Buyer will be owned by the promoter/ promoter group of Aster India (Promoters) and funds managed by Fajr Capital Advisors in the shareholding ratio of 35:65.

Upon successful completion of the proposed transaction, the company is desirous of declaring dividends to the shareholders from the proceeds.

The board also approved to separate the India and GCC businesses into two distinct and standalone entities.

Upon completion, the separation of the India and GCC businesses will establish two distinct regional healthcare champions that will benefit from the strategic and financial flexibility to focus on growing market demand and the priorities of patients. Both the India and GCC entities will be operated by separate dedicated management teams and will also benefit from a dedicated investor base that will aid future growth in the Indian and GCC markets respectively, both of which hold significant growth potential.

The company plans to ramp up bed capacity in India by almost one-thirds, by adding more than 1500 beds by FY27. In the GCC, Aster DM Healthcare FZC will bolster its expansion plans in key markets, such as the UAE and Saudi Arabia, while enabling greater access to quality and comprehensive healthcare across physical and digital channels.

Post completion, Dr. Azad Moopen will continue as the founder & chairman of Aster overseeing both India and GCC entities. Ms. Alisha Moopen will be promoted to Managing Director and Group CEO of the GCC business to lead a long-term strategy that will unlock value as a pure-play GCC operating company. The Indian entity will continue to be led by Dr. Nitish Shetty as Chief Executive Officer, who will focus on the growth of the India business, aimed at creating value for its shareholders.

Dr. Azad Moopen, founder and chairman of Aster DM Healthcare, said, “The strategic decision to segregate the India and GCC operations was based on the rationale to establish fair value for both entities, creating two pure-play geographically focused entities that are able to leverage the growth opportunities in their respective markets. In India, we as Promoters, remain committed to our growth plans and hence had increased our stake to 42% earlier this year. Major institutional shareholders continue to remain invested, reflecting overall confidence in the Company’s India business model and go-to-market strategy spanning all segments of the healthcare space.”

Aster DM Healthcare operates in various segments of the healthcare industry, which include hospitals, clinics and retail pharmacies, and provides healthcare services to patients across economic segments in various gulf corporation council (GCC) states through its various brands, such as Aster, Medcare and Access.

The company recorded a consolidated net loss of Rs 30.79 crore in Q2 FY24 as against a net profit of Rs 46.21 crore reported in Q2 FY23.