Aster DM Healthcare share price jumps over 14% to a fresh 52-week high on sale of Gulf business
Aster DM Healthcare share price rallied over 14% to hit a fresh 52-week high on Wednesday after the company approved to sell its GCC (Gulf Cooperation Council) business for over $1 billion. Aster DM shares jumped as much as 14.83% to a new high of ₹382.00 apiece on the BSE. Hospital chain Aster DM Healthcare on Tuesday announced to separate its Gulf business and sell it to its Indian promoters (Moopen family) and a Dubai consortium for $1.001 billion.
Read here: Aster divests Gulf business for $1 bn As per the transaction, a consortium led by United Arab Emirates (UAE) government-backed Fajr Capital will own 65% of the Gulf entity, while Aster’s promoter Azad Moopen will own 35% stake. The sale is anticipated to complete in Q4 of the Financial Year ending 2024, the company said. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Of the $1.001 billion, $903 million will be paid to Aster DM Healthcare.
The bulk of the proceeds will be issued as dividends to Aster DM Healthcare investors, the company said, subject to board approval. The rest will be paid out subsequent to certain ‘contingent events’, including an earnout of up to $70 million based on EBITDA (earnings before interest, taxes, depreciation, and amortization) achieved by the GCC business in FY24, the company said. Also Read: New beer launch expected to boost United Breweries share price by 20% The transaction values the GCC business at an enterprise value of $1.7 billion ( ₹13,540 crore) and an equity value of $1.001 billion ( ₹8,215 crore), the company said.
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