Private equity firms, including BPEA EQT and Ontario Teachers’ Pension Plan Board (OTPP), are reportedly considering a deal to acquire assets of Aster DM Healthcare Ltd., including its business in India. Preliminary interest has been expressed by BPEA EQT and OTPP in the hospital operator’s business in India, indicating a move to tap into the growth potential of healthcare services in the country. Other potential bidders for Aster’s India business include Blackstone Inc. and KKR & Co.
There is a possibility of collaboration among prospective acquirers, and deal considerations may lead to various transaction structures, including a full takeover of the company. Separately, a consortium led by Dubai-based private equity firm Fajr Capital is reportedly seeking to acquire a majority stake in Aster’s Gulf business.
The potential deal for all of Aster could value the company at over $2.5 billion. The Gulf assets alone may fetch about $1 billion, while the Indian business is estimated to be worth around $1.5 billion. Aster’s shares have seen a 40% increase in value this year, currently valuing the Mumbai-listed company at about $1.9 billion.
Blackstone is exploring the possibility of acquiring Aster’s India business through Quality Care India Ltd., a company in which it received approval last month from the Competition Commission of India to acquire a 72% stake.
While talks are ongoing, and discussions with potential bidders are in progress, the outcome remains uncertain. Other bidders could also emerge in the process. Representatives for Aster, Blackstone, BPEA EQT, and KKR have declined to comment, and there has been no immediate response from OTPP.
Aster, founded in 1987, operates 33 hospitals, clinics, and pharmacies across India and the Gulf region. The company has been working to hive off its business in the Gulf, and its expansion plans in India include adding hundreds of hospital beds by 2026. India represents over half of Aster’s hospitals, although it accounted for about a quarter of the company’s revenue in the quarter ending June 30.
