The race hots up for Aster DM's India business
MUMBAI : Private equity (PE) firm KKR & Co., Canadian pension fund Ontario Teachers’ Pension Plan (OTPP) and Blackstone-backed Care Hospitals have submitted non-binding term sheets to acquire a stake in the Indian business of Aster DM Healthcare Ltd, two people aware of the matter said. One of the two people said Hong Kong-based investment firm BPEA EQT has also presented a term sheet.
Mint had reported on 28 November that Aster DM Healthcare sold its gulf business to Fajr Capital and the Moopens, the founding family of Aster DM. KKR, which is believed to be in advanced talks with Aster DM for the India deal, may initially acquire 20-25% stake, but may purchase more later, the people said.
The suitors have presented different deal models to pursue the transaction. A third person aware of the transaction said on the condition of anonymity that the Moopens prefer to close the sale of the GCC (Gulf Cooperation Council) unit before pursuing a stake sale in the Indian operations.
The sale of the Gulf business is expected to close by March 2024. When contacted, Azad Moopen, founder & chairman, Aster DM Healthcare, said: “As part of our business plans, we regularly explore opportunities, including onboarding like-minded investors who can add value to our business and stakeholders.
The company is now in the process of completing the disinvestment of its GCC business to a consortium with promoter family leadership." Moopen added that the promoters plan to retain control and leadership in both India and the GCC after the restructuring. KKR has offered to acquire stake in the Indian entity from investors such as Olympus Capital and by accumulating stake from the secondary markets, the two people mentioned above said on the
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