Aster DM Healthcare, Quality Care India ink merger deal

Aster DM Healthcare Ltd and Blackstone-backed Quality Care India Ltd connected Friday announced a merger woody done a stock swap woody creating 1 of India's apical 3 infirmary chains.

The 2 companies person signed definitive agreements to merge, taxable to regulatory, firm and shareholders' approvals, Aster DM Healthcare (Aster) and Quality Care India Ltd (QCIL) said successful a associated statement.

The merger volition make 1 of the apical 3 infirmary chains successful India successful presumption of gross and fig of beds with 38 hospitals and implicit 10,150 beds with a beardown beingness crossed South and Central India successful 27 cities, it added.

The merged listed entity volition beryllium named Aster DM Quality Care Ltd.

As portion of the deal, Aster volition acquisition a 5 per cent involvement successful QCIL from Blackstone and TPG successful information of superior stock issuance by Aster for 3.6 per cent involvement successful it arsenic an archetypal stock acquisition.

Subsequently, QCIL volition beryllium merged into Aster by mode of a strategy of amalgamation. Aster expects the merger transaction to adjacent by the 3rd 4th of FY2025-26. The ratio for the archetypal stock acquisition is the aforesaid arsenic projected for the merger, the connection said.

The merged entity volition beryllium jointly controlled by Aster promoters and Blackstone, holding 24 per cent and 30.7 per cent ownership respectively, it added.

Based connected the agreed swap ratio, Aster shareholders volition clasp 57.3 per cent and QCIL shareholders volition clasp 42.7 per cent successful the merged entity.

Aster DM Healthcare Founder and Chairman Azad Moopen volition proceed successful his relation arsenic the Executive Chairman and volition oversee the merged entity -- Aster DM Quality Care. On the different hand, QCIL Group MD Varun Khanna volition beryllium the MD and Group CEO of the merged entity.

In a regulatory filing, Aster said taxable to mutually agreed thresholds Moopen volition proceed arsenic the enforcement president for a play of 3 years and six months aft which, helium volition proceed arsenic non-executive Chairman.

Aster promoters volition clasp the close to name the non-executive Chairman, with BCP having the close to name the Vice-Chairman.

"The integration of Aster and Quality Care's extended web and heavy operational expertise with backing from Blackstone and TPG 'among the astir respected backstage equity firms volition heighten our quality to present world-class healthcare services, thrust innovation, and amended diligent outcomes," Moopen said.

Blackstone Private Equity Head of Asia, Amit Dixit said: "We are committed to creating 1 of India's starring platforms successful the healthcare sector...We volition assistance turn the platform, grow its footprint, and make it into a world-class healthcare institution." TPG Senior Advisor, Vishal Bali said healthcare has agelong been a thematic absorption for TPG globally and successful India, and Quality Care's concern with Aster volition make 1 of India's apical 3 multi-speciality infirmary chains.