Health

Aster DM completes GCC and India business split

By Pramod Kumar

April 4, 2024, 4:13 AM

Dr Azad Moopen, the founder chairman of Aster, retains 35 percent ownership alongside management and operational control

Hospital chain Aster DM Healthcare has concluded the separation of its GCC and India businesses into two standalone entities.

As part of the separation plan, a consortium of investors led by Fajr Capital, a UAE sovereign-backed private equity firm, acquired a 65 percent stake in Aster GCC.

Dr Azad Moopen, the founder chairman of Aster, has retained a 35 percent ownership alongside management and operational rights, the company said in a statement.

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The transaction valued the GCC business at $1 billion.

Dr Moopen will remain the chairman, while Alisha Moopen will serve as Aster GCC’s managing director and group CEO.

The Fajr Capital-led consortium includes Emirates Investment Authority, Al Dhow Holding Company, the investment arm of AlSayer Group, Hana Investment Company, a subsidiary of Olayan Financing Company and Wafra International Investment Company, among other regional and international investors.

The separation has established a GCC business with tremendous growth potential, focusing on tapping the region’s opportunities, said Dr Moopen.

In the UAE, the company will soon unveil Medcare Royal Hospital, a 126-bed super specialty hospital in Al Qusais.

Meanwhile, the Aster Pharmacy business in Saudi Arabia will open 180 new retail stores within the next three to five years. Additionally, Aster Sanad Hospital in Riyadh will expand its bed capacity.

In terms of India, Aster plans to add 1,500 beds by 2027, investing Rs8.5-9 billion ($102-108 million).

Founded in 1987, Aster was established as a single clinic in Dubai. The company now operates 15 hospitals, 117 clinics and 285 pharmacies across the UAE, Saudi Arabia, Oman, Qatar and Bahrain.

In November 2023, the company secured board approvals to separate its GCC and India businesses to focus on the growing demand in their respective markets. Aster shareholders approved the separation plan in January 2024.