Mike Taylor_Rizwan Butt

Clifford Chance on Aster DM Healthcare’s $1B Gulf Business Sale 

Clifford Chance has provided counsel to the Moopen Family, founders of Aster DM Healthcare, in a strategic move to separate the Indian and Gulf Cooperation Council (GCC) businesses of Aster DM Healthcare. This transformative restructuring includes the majority sale of Aster’s Gulf business to a consortium led by Fajr Capital, a UAE-based sovereign-owned private equity firm. The transaction values the GCC business at an equity value of US$1.0 billion and an enterprise value of USD$1.7 billion. 

Aster DM Healthcare currently operates 32 hospitals, 127 clinics, and 521 pharmacies across the GCC and India. In this significant transaction, Aster DM Healthcare will divest a 65% stake in its GCC business to the Fajr Capital-led consortium, while the Moopen Family retains a 35% stake. The consortium and the Moopen Family will establish a joint venture to govern and operate the future of the GCC business. The transaction is contingent on customary regulatory and corporate approvals, including shareholder approval. 

This divestiture concludes a year-long sale process, positioning Aster DM Healthcare and the GCC businesses for strategic growth. The separation allows each entity to focus more actively on its respective businesses, providing increased flexibility to pursue growth opportunities. 

The Clifford Chance team advising on the transaction was jointly led by Dubai based partner, Mike Taylor, and senior associate Rizwan Butt with support from senior associate Mhairi Cruickshank

Rizwan Butt commented on the significance of the transaction: “It has been an honour to support the Moopen Family through this complex and transformative transaction which will result in the establishment of two distinct regional healthcare champions that will benefit from the strategic and financial flexibility to focus on growing market demand and the priorities of patients in their respective regions.” 

Allen & Overy advised a consortium led by Fajr Capital on the acquisition of a 65% stake in Aster DM Healthcare. For further details click here

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