Shares of Aster DM, a public-based premium healthcare provider, surged more than 6 per cent on Thursday after reports of sale of its India business sufaced.
The stock was trading at around Rs 344, up 18 points or 5.57 per cent on the National Stock Exchange (NSE). On a year-to-date basis, the company’s share price has soared to almost 50 per cent and over 38 per cent in last six months on the NSE.
BPEA EQT, along with the Ontario Teachers' Pension Plan Board, are the major players in the private equity sector, showing their interest in the potential acquisition of Aster DM Healthcare Ltd's assets. These assets encompass Aster's extensive operations in India, as per a report by Bloomberg published earlier this year. Among other contenders are Blackstone Inc. and KKR & Co., considering the potential purchase of Aster's Indian business as part of this high-profile acquisition endeavor.
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In a separate development, Fajr Capital, based in Dubai, is part of a consortium aiming to acquire a controlling interest in Aster's Gulf operations, according to a Bloomberg report published earlier this year.
The prospective total valuation of Aster, if the deal goes through, is estimated to exceed $2.5 billion. The Gulf assets are anticipated to be valued at approximately $1 billion, while the Indian business is expected to be valued at around $1.5 billion in the transaction.
Aster DM is a healthcare management company that operates hospitals in India and the Gulf region. With a strong presence, it oversees 33 hospitals and a multitude of clinics and pharmacies, delivering essential healthcare services across these areas. The firm was established in 1987.
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