-By ArdorComm News Network
December 2, 2024
In a landmark healthcare merger, Aster DM Healthcare and Blackstone-backed CARE Hospitals have united to form Aster DM Quality Care, a top-tier player in India’s healthcare industry. With an enterprise value of ₹43,000 crore ($5 billion), the merged entity will rank among India’s top three hospital chains, alongside Apollo and Manipal Hospitals.
The merger will consolidate 38 hospitals across 27 cities, with plans to expand capacity to 13,300 beds by FY27, adding 3,500 new beds. Revenue for the combined entity is estimated at ₹7,314 crore.
Deal Structure and Shareholding
Aster DM will acquire 19 million equity shares of Quality Care India Ltd. (QCIL) from Blackstone and Centella at ₹445.8 per share, issuing 18.6 million shares to QCIL shareholders at ₹456.33 per share. The swap ratio for the merger entails QCIL shareholders receiving 977 Aster shares for every 1,000 QCIL shares.
Post-merger, the shareholding structure will see Blackstone holding 30.7%, Aster promoters 24%, and the remaining 45.3% with the public and other shareholders.
Leadership and Vision
Azad Moopen, founder and chairman of Aster DM Healthcare, will continue as executive chairman of the merged entity, while CARE Hospitals’ Varun Khanna will assume the role of managing director and group CEO.
“This merger combines the strengths of two pioneers, creating a transformative force in the healthcare sector. We aim to redefine patient care, innovation, and accessibility,” Moopen stated.
Strategic Focus
The new entity plans to integrate strengths, expand its footprint, and set benchmarks in patient-centric care. Amit Dixit, Blackstone’s head of Asia Private Equity, highlighted their commitment to scaling the platform into a world-class healthcare institution.
Vishal Bali, senior advisor at TPG, praised the partnership as a significant milestone for India’s multi-specialty hospital ecosystem.
Regulatory Approvals and Timeline
The merger, expected to close by Q3 FY26, is subject to shareholder and regulatory approvals.
This deal marks a transformative chapter in India’s healthcare sector, setting the stage for significant advancements in care delivery and infrastructure.
Source: Business Standard
Photo Credit: Business Standard