On January 15, Aster DM Healthcare revealed its decision to distribute a major share of the proceeds resulting from the sale of its stake in the Gulf business. This move is set to benefit shareholders who can anticipate receiving dividends of up to Rs 120 per share. The earlier approval of the sale of Aster DM Healthcare’s GCC business to Alpha GCC Holdings for a substantial $1.01 billion signifies a significant financial transaction. The company expects to receive $903 million upon closing the deal, and the remainder depends on fulfilling certain conditions.
This strategic initiative not only underscores the financial implications for Aster DM Healthcare but also provides insights into the company’s commitment to enhancing shareholder value through prudent business decisions in the dynamic Gulf Cooperation Council (GCC) market.
“Following deliberations regarding future expansion plans, capex requirements, and cash reserves, the Board is desirous to consider the distribution of 70-80 percent of the upfront consideration of $903 million, as dividend to its shareholders i.e. in the range of Rs 110-120 per share.” the company said in an exchange.
“The proposed declaration of dividend by the company is subject to completion of the transaction including receipt of shareholder approval for the transaction, approval of Affinity to distribute the transaction proceeds to the company, and receipt of approvals required under corporate laws for dividend distribution, including Board approval.”
Also Read: Aster separates India, GCC businesses; Fajr Capital to invest in Aster GCC
Within the Gulf region, the company operates 15 hospitals, boasting a collective capacity of 1,439 beds. Additionally, it manages a network of 115 clinics and 264 pharmacies, solidifying its significant presence in the healthcare sector.
Upon completing the transaction, the promoters of Aster India and funds managed by Fajr Capital Advisors Limited will hold Alpha in a 35:65 shareholding ratio, as detailed by Aster. As part of its strategic financial planning, Aster emphasized that the proceeds from the transaction are not imperative for achieving its growth objectives in the India business. The company’s robust and profitable scaling operations, coupled with minimal leverage in its financial books, ground this assertion.
