A&O: Fajr Capital buys into Aster DM Healthcare’s GCC business

A consortium led by Fajr Capital, guided by Allen & Overy, is set to acquire a 65% stake in Aster DM Healthcare, specifically its GCC business. Aster DM Healthcare’s board of directors has approved the separation of its India and GCC businesses into distinct entities, pending regulatory and corporate approvals, including shareholder consent. 

In the proposed separation, the Moopen family, founders of Aster DM Healthcare, will retain management of the GCC business, holding a 35% stake, while the Fajr Capital-led consortium acquires the remaining 65%. The combined market cap of Aster DM Healthcare’s India and GCC businesses is approximately USD 2 billion. The transaction values the GCC business at an enterprise value of USD 1.7 billion and an equity value of USD 1.0 billion. 

Fajr Capital, a UAE-based private equity firm, spearheads the consortium and has a robust track record in high-growth sectors across the Middle East and Southeast Asia. The firm, owned by sovereign wealth funds from Abu Dhabi, Brunei Darussalam, and Malaysia, along with private investors from the Gulf region and beyond, specializes in diverse industries, including financial services, education, renewable energy, infrastructure, food and beverage, waste management, and industrial manufacturing. 

David Foster (pictured), the Middle East Head of Corporate and partner at Allen & Overy, expressed satisfaction in advising Fajr Capital on this significant transaction. He highlighted the ongoing M&A activity in the GCC, particularly in demographic-driven sectors, and expressed enthusiasm for the potential of digital transformation in the healthcare space. 

The advising team included Partners Tom Butcher, Samer Eido and Kamar Jaffer along with senior associate Rushal Noor.  

Baker McKenzie has advised Affinity Holdings Private Limited, a wholly owned subsidiary of Aster DM Healthcare Limited, on the separation and the sale of its GCC healthcare business to Alpha GCC Holdings. For further information about the involved team click here

Clifford Chance has provided counsel to the Moopen Family, founders of Aster DM Healthcare. For further information on the involved team members click here