Proxy advisor against Aster DM Healthcare's gulf deal
Aster DM Healthcare's resolutions seeking shareholder approval for the $1 billion deal involving the sale of its business in the GCC (Gulf Cooperation Council) region to Alpha GCC Holdings, an entity partly held by promoters.
Aster DM has proposed two resolutions — the sale of its GCC business to Alpha GCC, a related party transaction, and the sale of subsidiary Affinity Holdings to Alpha GCC. The e-voting, which began on December 24, will end on January 24.
Aster DM Healthcare has put forth a proposal to segregate its India and GCC segments through the divestment of ownership in its subsidiary, Affinity Holdings, responsible for operations in the GCC region.
The envisaged sale is slated to be executed to Alpha GCC Holdings, with Aster DM promoters retaining a 35% stake and a consortium of private equity investors, spearheaded by Fajr Capital, securing a 65% stake in the venture.
After the divestment, the Indian-listed company Aster DM will solely consist of the Indian business and will receive cash consideration for the divestment of the GCC business.
IiAS said it does not endorse the resolution, citing lack of transparency regarding the specific proportion of receipts slated for distribution. The company declined to comment on the IiAS report and said the board will take a final view on the amount to be retained in the Indian balance sheet.
«A significant portion of the proceeds from the GCC transaction is intended to be utilised to pay dividends to the shareholders of Aster India,» said the company spokesperson.
On completion of the segregation, the promoter group will continue to hold 42% in Aster DM and will hold 35% in the GCC entity. Both companies will have separate management and governance structures.
