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Clifford Chance advises the Moopen Family on Aster DM Healthcare's strategic restructuring and US$1 billion Gulf business sale

12 December 2023

Clifford Chance advises the Moopen Family on Aster DM Healthcare's strategic restructuring and US$1 billion Gulf business sale

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

The Aster DM Healthcare group currently operates 32 hospitals, 127 clinics and 521 pharmacies across the GCC and India.

As part of this significant transaction, Aster DM Healthcare will sell a 65% stake in its GCC business to the Fajr Capital-led consortium with a 35% stake retained by the Moopen Family and the consortium will enter into a joint venture with the Moopen Family in respect of the future governance and operations of the GCC business. The transaction is subject to customary regulatory and corporate approvals (including shareholder approval).

This divestiture marks the culmination of a year-long sale process, positioning Aster DM Healthcare and the GCC businesses for strategic growth and allowing each to concentrate more actively on their respective businesses with 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."