Aster DM Healthcare separates GCC, India business, sells stake to Fajr Capital

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Aster DM Healthcare, a prominent multinational integrated healthcare provider in the region, announced the separation of GCC and India businesses into two distinct and independent entities.

In a statement released on April 3, Aster DM Healthcare said the two separated businesses will now work as two standalone entities to “better cater to the evolving healthcare needs of patients in their respective markets”.

This decision was approved by the company’s board in November 2023 and by shareholders in January 2024.

Additionally, the statement revealed that a consortium led by Fajr Capital, a sovereign-backed private equity firm, acquired a 65 per cent stake in Aster GCC, valuing the GCC business at approximately $1bn. The Moopen family, founders of the brand, retains a 35 per cent stake, ensuring continued operational control.

Dr Azad Moopen remains the founder chairman, with Alisha Moopen serving as the managing director and group CEO of Aster GCC.

The deal was overseen by EY, PwC, Moelis & Company, Credit Suisse, Baker & McKenzie LLP, Cyril Amarchand Mangaldas, and AZB & Partners through financial and legal advisory services for the transaction.

Background

Founded in 1987 by Dr Azad Moopen, Aster began as a single clinic in Dubai with a vision to make high-quality healthcare accessible. Today, it has grown into a major healthcare services provider in the GCC, comprising 15 hospitals, 117 clinics, and 285 pharmacies across the region and three brands – Aster, Medcare and Access.

Aster DM Healthcare’s partnership with Fajr Capital

Meanwhile, the Fajr Capital-led consortium includes Emirates Investment Authority, Al Dhow Holding Company (the investment arm of AlSayer Group), Hana Investment Company (a subsidiary of Olayan Financing Company) and Wafra International Investment Company, among other regional and international investors. Iqbal Khan, CEO of Fajr Capital, expressed enthusiasm for the partnership, citing Aster’s strong market presence and commitment to quality healthcare. “Today’s announcement marks the beginning of an exciting new chapter for Aster in the GCC,” added Khan.

“Healthcare remains one of the largest, most pivotal and dynamic sectors in the regional economy. With its deep regional roots, Aster has emerged as a healthcare champion in the GCC and benefits from a strong market presence, exceptional workforce and an unwavering commitment to providing the highest quality of healthcare to the regional population.”

“We are pleased to have the opportunity to partner with Dr Azad, Alisha and the Moopen family, who share our values and vision for the business, and look forward to working with them and the leadership team to unlock Aster’s tremendous potential in the GCC,” he said.

Expansion

With the new investment, Aster GCC said it plans an ambitious regional expansion. In the UAE, it will unveil Medcare Royal Hospital, a 126-bed super specialty hospital, while in Saudi Arabia, Aster Pharmacy aims to open 180 new retail stores within 3-5 years.

Dr Azad Moopen, founder chairman of Aster DM Healthcare said, “The separation has established a GCC business which has tremendous growth potential and will be focused on tapping the opportunities in the region. We are glad that Fajr Capital and its consortium of partners has chosen to partner with us on this growth journey and we are confident that their demonstrated expertise will empower our expansion plans within GCC’s dynamic healthcare landscape, especially Saudi Arabia.

“Together, we envision a future where Aster’s business in the GCC continues to deliver best-in-class healthcare services to its patients across the region,” he added.

This strategic separation and investment mark a significant milestone for Aster DM Healthcare as it continues to expand its footprint and enhance healthcare delivery in the GCC region.