Aster DM Healthcare jumps 12%, to consider Rs 120 dividend following GCC biz stake sale

Aster DM Healthcare shares jump 12 percent in early trade on January 16 as the stake sale of its Gulf Cooperation Council (GCC) business to Alpha GCC Holdings nears completion.

In 2023, the Dubai-based Aster DM Healthcare had approved the sale of its business in the GCC region to Alpha GCC Holdings for $1.01 billion. Of this, $903 million will be received at the closing of the deal and the rest will depend on the fulfillment of certain conditions.

As of 9.30, shares of the firm were trading at Rs 437.05 apiece, up by 9.2 percent on the NSE.

The board will consider the distribution of 70–80 percent of the upfront consideration of $903 million as a dividend to its shareholders, which will be in the range of Rs 110 to Rs 120 a share.

Alpha GCC Holdings will have ownership shared between the promoters and promoter group of Aster India, while funds will be managed by Middle East private equity firm Fajr Capital Advisors in a shareholding ratio of 35:65 at the closing of the transaction.

In a filing to exchanges, Aster DM said the reason behind the transaction was to segregate the India and the GCC business. The GCC business and the India healthcare businesses have evolved differently in the last five years. Insurance drives the GCC business with different healthcare market dynamics than the India business.

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“The market has considered the news of the transaction favourably as is evidenced by the company’s stock price after announcement of the transaction, supporting this assessment,” it added.

Over the past six months, Aster DM shares have jumped 29.22 percent. The frontline equity index Nifty has gained around 11.5 percent during the period.

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