Aster DM Healthcare Ltd and Blackstone-backed High quality Care India Ltd on Friday introduced a merger deal via a share swap deal creating one among India’s prime three hospital chains.
The 2 firms have signed definitive agreements to merge, topic to regulatory, company and shareholders’ approvals, Aster DM Healthcare (Aster) and High quality Care India Ltd (QCIL) mentioned in a joint assertion.
The merger will create one of many prime three hospital chains in India when it comes to income and variety of beds with 38 hospitals and over 10,150 beds with a powerful presence throughout South and Central India in 27 cities, it added.
The merged listed entity might be named Aster DM High quality Care Ltd.
As a part of the deal, Aster will buy a 5 per cent stake in QCIL from Blackstone and TPG in consideration of major share issuance by Aster for 3.6 per cent stake in it as an preliminary share acquisition.
Subsequently, QCIL might be merged into Aster by means of a scheme of amalgamation. Aster expects the merger transaction to shut by the third quarter of FY2025-26. The ratio for the preliminary share acquisition is similar as proposed for the merger, the assertion mentioned.
The merged entity might be collectively managed by Aster promoters and Blackstone, holding 24 per cent and 30.7 per cent possession respectively, it added.
Based mostly on the agreed swap ratio, Aster shareholders will maintain 57.3 per cent and QCIL shareholders will maintain 42.7 per cent within the merged entity.
Aster DM Healthcare Founder and Chairman Azad Moopen will proceed in his position because the Government Chairman and can oversee the merged entity — Aster DM High quality Care. Then again, QCIL Group MD Varun Khanna would be the MD and Group CEO of the merged entity.
In a regulatory submitting, Aster mentioned topic to mutually agreed thresholds Moopen will proceed as the manager chairman for a interval of three years and 6 months after which, he’ll proceed as non-executive Chairman.
Aster promoters will retain the fitting to nominate the non-executive Chairman, with BCP having the fitting to nominate the Vice-Chairman.
“The combination of Aster and High quality Care’s in depth community and deep operational experience with backing from Blackstone and TPG ‘among the many most revered non-public fairness companies will improve our potential to ship world-class healthcare providers, drive innovation, and enhance affected person outcomes,” Moopen mentioned.
Blackstone Personal Fairness Head of Asia, Amit Dixit mentioned: “We’re dedicated to creating one among India’s main platforms within the healthcare sector…We’ll assist develop the platform, increase its footprint, and develop it right into a world-class healthcare establishment.” TPG Senior Advisor, Vishal Bali mentioned healthcare has lengthy been a thematic focus for TPG globally and in India, and High quality Care’s partnership with Aster will create one among India’s prime three multi-speciality hospital chains.
