A&O advises a consortium led by Fajr Capital on the acquisition of a stake in the Aster DM Healthcare’s GCC business

Allen & Overy is advising a consortium led by Fajr Capital on the acquisition of a 65 per cenr stake in Aster DM Healthcare FZC, the holding company of the GCC business of Aster DM Healthcare.

On November 28, 2023, Aster DM Healthcare received approval from its board of directors to separate its India and GCC businesses into two distinct and standalone entities, subject to regulatory and corporate approvals (including shareholder approval).

Under the separation plan, the Moopen family (the founders of Aster DM Healthcare) will continue to manage and operate the GCC business, retaining a 35 per cent stake following the sale of the remaining 65 per cent to the Fajr Capital-led consortium.

The current market cap of the combined India and GCC business stands at around USD2 billion. The transaction values the GCC business at an enterprise value of USD1.7 billion and an equity value of USD 1.0 billion.

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.

Fajr Capital is a UAE-based private equity firm which invests in the Middle East and Southeast Asia. The company is owned by prominent sovereign wealth funds from Abu Dhabi, Brunei Darussalam and Malaysia, and private investors from the Gulf region and beyond. Fajr Capital has developed a strong track record of executing and successfully exiting landmark platform investments across various high-growth, demographic-driven sectors, such as financial services, education, renewable energy, infrastructure, food and beverage, waste management, and industrial manufacturing, amongst others.

Middle East Head of Corporate and partner David Foster, who led the Allen & Overy team, commented, “We are delighted to have advised Fajr Capital on this landmark transaction. We continue to see M&A activity in the GCC across demographic-driven sectors, including social infrastructure, and are excited by the potential of digital transformation within the healthcare space.”