In a move to have 1+1 as more than sum of two, Aster DM Healthcare Limited announced a strategic merger with Blackstone & TPG backed Quality Care group which will likely to place the merged entity as a 3rd largest hospital chain in India.
Aster DM Healthcare Limited ("Aster" or Transferee Company") is inter alia engaged in providing healthcare and related services (including diagnostics, tele-health and other allied services) through a network of multi-specialty healthcare establishments across India. The equity shares of Aster are listed on nationwide bourses.
Last year, Aster divested its entire hospital base located in Gulf countries to deleverage itself & build war chest for strengthening India position.
Quality Care India Limited ("QCIL" or "Transferor Company) is a part of originally founded 'Care Group' engaged in the business of providing healthcare and related services through a network of multi-specialty healthcare establishments across India and Bangladesh, that it or its subsidiaries own or operate from time to time. QCIL'S healthcare troika includes CARE Hospitals, KIMSHEALTH and Evercare. Last year, QCIL announced acquisition of ~80% stake in KIMS Healthcare Management Limited, a Kerala based hospital chain.
Over the years, Care group has seen multiple ownership changes. In 2012, Advent International acquired majority shareholding and investors including Late Mr. Rakesh Jhunjhunwala. In 2016, Abraaj growth market health fund acquired entire stake from Advent. In 2019, TPG took over the controlling stake in Care group. Last year, Blackstone entered QCIL with acquiring 72% controlling stake from TPG. As on date, QCIL is owned & controlled by private equity players like Blackstone & TPG.
The Proposed Transaction:
The proposed acquisition of QCIL by Aster has two legs:
This story is from the December 2024 edition of M & A Critique.
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This story is from the December 2024 edition of M & A Critique.
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