Aster DM to consider paying Rs 110-120 dividend from proceeds of gulf business sale
Aster DM Healthcare on Monday said it would consider paying Rs 110-120 as dividend to shareholders from the proceeds after the sale of majority stake in GCC (Gulf Cooperation Council) business.
Aster had earlier announced that it will separate its India and gulf businesses in a $1-billion deal. The sale is expected to be completed by the March quarter.
The board of directors held a meeting earlier on Monday to discuss the progress of the transaction between Affinity Holdings and Alpha GCC Holdings for segregation of the company’s GCC business.
«The Board was briefed that there has been satisfactory progress on conditions precedent for the transaction and Affinity and the buyer are aiming to complete the transaction soon,» the company said in a filing.
The company will get $1.001 billion from the proposed sale, of which $903 million will be paid at closing.
About $98.8 million may be received subsequently subject to certain contingent events, which includes an earnout of up to $70 million based on EBITDA achieved by the GCC business for FY24.
Following deliberations regarding future expansion plans, capex requirements, cash reserves, the Board has expressed its desire to consider distribution of 70-80% of the upfront consideration of $903 million, as dividend to its shareholders.
