Aster DM Healthcare shares surge 12% as separation of India and GCC biz concludes

Shares of Aster DM Healthcare Ltd climbed 12 per cent in Thursday's trade after the integrated healthcare provider said it has concluded the segregation of the GCC business through the sale by Affinity Holdings, a wholly owned material subsidiary of the company of entities conducting business in the GCC region, to Alpha GCC Holdings Limited. 

Under the separation plan, a consortium of investors led by Fajr Capital, a sovereign-backed private equity firm, acquired a 65 per cent stake in Aster GCC, with the Moopen family retaining a 35 per cent stake alongside management and operational rights. In the Indian operations, the Moopen family continues to hold 41.88 per cent stake. 

Following the development, the stock rose 11.81 per cent to hit a high of Rs 467.55 on BSE.

"The transaction has now concluded and pursuant to which Affinity Holdings Limited (a wholly subsidiary of the Company) has received a cash consideration of $907.6 million," Aster DM Healthcare said.

In November 2023, the Aster DM obtained board approvals to separate its GCC and India businesses to establish two distinct regional healthcare champions that will benefit from the strategic and financial flexibility to meet the priorities of patients and focus on the growing demand in their respective markets.