Dubai-based Aster DM Healthcare has approved the sale of its business in the GCC (Gulf Co-Operation Council) region to Alpha GCC Holdings Ltd. for a consideration of $1.01 billion.

In a transaction executed through its overseas subsidiary Affinity, its board of directors approved the sale of shares it held in Aster DM Healthcare FZC to Alpha. Of this, $903 million, subject to customary adjustments, was payable at closing, and up to $98.8 million may be received subsequently, subject to certain contingent events, Aster DM Healthcare said. This includes an earnout of up to $70 million based on EBITDA achieved by the GCC business for the financial year ending March 31, 2024.

Alpha will be owned by the promoters of Aster India and funds managed by Fajr Capital Advisors Limited in a shareholding ratio of 35:65, respectively, at the closing of the transaction, Aster DM said.

Dr. Azad Moopen will continue in his role as the founder and chairman and will oversee both India and GCC businesses while Alisha Moopen will be promoted to the position of Managing Director and Group CEO of the GCC business.

Moopen told businessline, the restructuring was done as the GCC business was not growing as well as the India business due to different market dynamics, including the region being more saturated and insurance-driven. The consolidated revenues of Aster DM Healthcare is about ₹11.933 crore, of which 70 per cent revenues come from the GCC region, he said. The India networks would have about 19 hospitals (4,500 beds) now, and the consortium-driven GCC business would hold about 15 hospitals (1,400 beds).