Dr. Moopen needs only Rs434 crore to buy ``GCC'' stake

KOCHI: DrAzad Moopen-led promoter group will be required to bring in only about Rs434 crore to finance the 35 per cent stake in the GCC operations of Aster DM Healthcare as the group is set to receive Rs2,506 crore as dividend from the parent company.

Recently, the company’s board approved the separation of Aster’s India and GCC businesses, subject to regulatory and corporate approvals including Aster India’s shareholders’ approval

Under the separation plan, a consortium led by Fajr Capital has entered into a definitive agreement to acquire a 65 per cent stake in the ownership of the GCC business, whereas the Moopen family will continue to manage and operate the GCC business retaining a 35 per cent stake.

With the GCC operations of the company having been valued at $1.01 billion or Rs8400 crore (approximately), the 35 per cent stake to be owned by Moopen family, as part of the agreement, will cost about Rs2940 crore.

The Aster DM Healthcare board at its recent meeting has said it desires to consider distribution of 70 per cent-80 per cent of the upfront consideration of $903 million (approx Rs7495 crore) from the GCC deal, as dividend to its shareholders, which could peg the dividend distribution at Rs5,996 crore if the distribution is done at the higher band of 80 per cent.

This means Moopen family that owns 41.8 per cent of the company that is listed on Indian stock markets, will stand to receive about Rs2506 crore leaving it to raise an additional Rs434 crore to foot the bill for the 35 per cent stake in the GCC operations.

In fact, Dr Azad Moopen had said earlier that the proceeds from the soon-to-be-announced dividend by Aster Healthcare would, to a good extent, take care of the payment to be done against the 35 per cent stake in the newly formed company Alpha GCC Holdings, which is buying the GCC operations from Aster DM Healthcare.

Aster DM Healthcare is in the process of separating its India and GCC businesses, whereas the latter is being sold to Alpha GCC Holdings for $1.01 billion or about Rs8,400 crore.

Aster founder and Chairman Dr Azad Moopen’s family, apart from owning 35 per cent stake, is set to take the management control of the GCC operations as part of the new arrangement.

At the same time, the UAE based Fajr Capital’s consortium will hold 65 per cent in the new company for which the regulatory approval as well as the shareholder ratification are awaited.

The company has officially communicated that while a portion of the transaction proceeds, net of transaction costs, will be distributed as dividend, the balance proceeds will be retained as reserves as well as to pursue inorganic growth opportunities from time to time.

Dr Moopen while interacting with analysts expressed high hope that the board of Aster Healthcare will utilize a big chunk of the proceeds from the sale of GCC operations amounting to Rs8,400 crore to distribute cash dividends to its shareholders.

“The company has not distributed any dividend to its shareholders since the IPO and the listing of the company shares on the Indian stock markets more than five years ago,” Dr Moopen had noted then.