In a significant development within the healthcare landscape, Aster DM Healthcare has successfully concluded the separation of its GCC and India businesses, paving the way for two distinct entities poised for individual growth trajectories. This strategic maneuver, aimed at optimizing operational focus and efficiency, was marked by a substantial investment from a consortium led by Fajr Capital, a prominent sovereign-backed private equity firm.
Founded in 1987 by Dr. Azad Moopen, Aster DM Healthcare commenced its journey as a single clinic in Dubai, driven by a noble vision to provide high-quality healthcare accessible to all. Over the decades, it has evolved into a trusted healthcare brand across the GCC and India, boasting a robust network encompassing 15 hospitals, 117 clinics, and 285 pharmacies.
Under the strategic separation plan, Aster DM Healthcare’s GCC business will now operate independently from its India operations. This structural realignment enables each entity to focus on addressing the unique healthcare needs and demands of its respective market, thereby enhancing strategic and financial flexibility to pursue targeted growth initiatives and patient-centric innovations.
The transaction witnessed the Fajr Capital-led consortium acquire a controlling stake of 65% in Aster GCC, while the Moopen family, alongside management, retains a 35% stake. With an approximate valuation of US$1.0 billion, this investment underscores the consortium’s confidence in the GCC healthcare market’s growth potential and Aster’s position as a leading integrated healthcare provider in the region.
Dr. Azad Moopen, Founder Chairman of Aster DM Healthcare, expressed optimism regarding the future prospects, highlighting the establishment of a GCC business with significant growth potential. He reiterated confidence in the partnership with Fajr Capital and its consortium of partners to empower expansion plans within the dynamic GCC healthcare landscape.
Ms. Alisha Moopen, Managing Director and Group CEO of Aster DM Healthcare GCC, echoed Dr. Moopen’s sentiments, emphasizing the company’s commitment to enhancing healthcare accessibility across physical and digital channels. She outlined an ambitious regional expansion strategy, including the launch of Medcare Royal Hospital in UAE and substantial growth plans for Aster Pharmacy in Saudi Arabia.
The Fajr Capital-led consortium, comprising esteemed investors such as Emirates Investment Authority and Al Dhow Holding Company, brings a wealth of expertise and resources to bolster Aster GCC’s expansion endeavors. Mr. Iqbal Khan, CEO of Fajr Capital, emphasized the significance of the healthcare sector in the regional economy and expressed confidence in Aster’s potential to thrive under their partnership.
In addition to the strategic separation, Aster DM Healthcare has prioritized regulatory compliance and transparency throughout the transaction process. Independent valuation advice from EY and PwC, alongside strategic counsel from Moelis& Company and Credit Suisse, underscores the commitment to ensuring a seamless transition and maximizing value for all stakeholders involved. As Aster DM Healthcare and Fajr Capital consortium embark on this transformative journey, they remain steadfast in their commitment to delivering excellence in patient care and driving positive impact in the healthcare ecosystem across the GCC. This strategic move aligns with Aster DM Healthcare’s dedication to innovation and evolution in meeting the evolving healthcare needs of patients, positioning the company as a leader in integrated healthcare services across diverse economic segments
