Aster stake sale: Aster’s India unit draws suitors valuing business at $1.5 billion

Personal fairness agency BPEA EQT and Ontario Academics’ Pension Plan Board are amongst corporations contemplating a deal to accumulate Aster DM Healthcare Ltd. belongings together with its India enterprise, in keeping with folks acquainted with the matter.

BPEA EQT and OTPP have expressed preliminary curiosity within the hospital operator’s enterprise within the South Asian nation, the folks mentioned. A deal would assist the traders faucet into the expansion potential of health-care providers within the nation, the folks mentioned, asking to not be recognized as a result of the matter is non-public. Others curious about potential bids for Aster’s India enterprise embody Blackstone Inc. and KKR & Co., the folks mentioned.

Potential acquirers might resolve to staff up, and deal concerns might additionally result in different transactions, together with a full takeover of the corporate, the folks mentioned.

Individually, Dubai-based non-public fairness agency Fajr Capital is a part of a consortium searching for to purchase a majority stake in Aster’s Gulf enterprise, Bloomberg Information reported in March.

A deal for all of Aster might worth it at greater than $2.5 billion, the folks mentioned. Its Gulf belongings could fetch about $1 billion, whereas the Indian enterprise may very well be price round $1.5 billion in a transaction, they added.

Aster shares have soared about 40% this 12 months, valuing the Mumbai-listed firm at about $1.9 billion.Blackstone could take into account an acquisition of Aster’s India enterprise through High quality Care India Ltd., one of many folks mentioned. The non-public fairness agency acquired approval final month from the Competitors Fee of India to purchase a 72% stake within the chain, referred to as Care Hospitals.Talks are ongoing and the bidders might nonetheless resolve towards pursuing a deal, the folks mentioned. Different bidders might nonetheless emerge, they added. Representatives for Aster, Blackstone, BPEA EQT and KKR declined to remark, whereas a spokesperson for OTPP didn’t instantly reply to requests for remark.

Based in 1987 from a single clinic in Dubai, Aster operates 33 hospitals in addition to tons of of clinics and pharmacies throughout India and the Gulf area. The agency has been working with advisers to hive off its enterprise within the Gulf, Chairman Azad Moopen instructed Bloomberg Information in 2021.

The corporate has been increasing in India and plans so as to add tons of of hospital beds there by 2026, in keeping with its newest investor presentation. Greater than half of Aster’s hospitals are within the nation, however that market accounted for a few quarter of its income in quarter ending June 30.

EQT AB final 12 months acquired Hong Kong-based BPEA within the greatest takeover within the non-public fairness sector. The deal mixed the 2 corporations’ Asia non-public fairness groups to create BPEA EQT.