Aster Healthcare's promoters in talks with private equity groups, look to sell India business

economictimes.indiatimes.com:

Healthcare led by Azad Moopen have initiated stake-sale talks with private equity groups such as Blackstone and KKR among others, said people aware of the matter. The promoters may even be open to selling a controlling stake in their India-listed hospital chain to capitalise on the ongoing sectoral consolidation, the people said. Aster Healthcare operates 32 hospitals, 127 clinics, 521 pharmacies, 16 laboratories and 189 patient experience centres in seven countries in West Asia and India.

It expanded facilities from 300 in 2017 to over 885 in FY23, including hospitals, clinics, pharmacies and labs, estimates HSBC. India contributes 25% of FY23 revenues and 29% of ebitda. The talks, preliminary in nature, are expected to gather pace once the Gulf business is separated from the India parent and 65% of that is sold to a consortium led by Dubai-based PE firm Fajr Capital at a $500 million valuation, as per reports.Max too might be interestedThose discussions are at an advanced stage.

Aster is “exploring a potential restructuring for segregation of the company’s business in Gulf Co-operation Council (GCC) region from its business in India”, it said in an exchange filing on July 5. “The company has engaged in discussions with various potential counterparties, including Fajr Capital. Such discussions continue to be ongoing.” Reuters broke the Fajr Capital story earlier this week.