Aster DM Healthcare shortlists Gulf Islamic, PE firm for majority stake in Gulf business

By Reuters

  • 03 Mar 2023
Credit: 123RF.com

Dubai-based Aster DM Healthcare is looking to sell a majority stake in its Gulf-based business and has short-listed buyers for the sale, two sources with direct knowledge of the matter told Reuters.

Aster, which operates hospitals, clinics and pharmacies in the Gulf and India, is looking to sell a stake of more than 50% in its business in the region, said the sources, declining to be named as the matter is not public.

Private equity firm Fajr Capital and Dubai financial services firm Gulf Islamic Investments have been shortlisted in the process, the sources said.

Fajr declined to comment, while Aster and Gulf Islamic Investments did not immediately respond to a request for comment when contacted by Reuters on Friday.

Mumbai-listed Aster began a sales process at the end of last year to demerge the Gulf business to help investors and analysts better understand the company, one of the sources said.

They want to monetise the business and believe that they are not getting appreciation of the GCC business in the share price, the source said.

Aster's stock price has declined 4% this year.