Investors in healthcare group Aster DM are in talks to sell a 30 percent stake in the company’s India unit for about $300 million, two sources familiar with the matter said, the latest potential deal in India’s booming healthcare sector.
Listed in Mumbai and headquartered in the UAE, Aster operates 32 hospitals, 127 clinics and 521 pharmacies in India and the UAE. Reuters reported last month that the current talks related to the company’s unit in India and come as Aster tries to spin off its business in the Gulf and sell a majority stake.
The two sources said Aster and its advisors had approached privately owned KKR & Co and Max Healthcare Institute, one of India’s largest hospital chains, for initial talks about a possible sale of the investors’ stake.
Aster investors considering a sale are Olympus Capital, which owns a 19% stake, and Mauritius-based Rymco Investments, which owns a 12% stake.
The two sources, who declined to be named because the discussions are private, said Aster had appointed New York-based investment bank Moelis & Company to manage the deal.
Spokesmen for KKR and Olympus declined to comment, while Aster, Remco and Mollys & Company did not respond to requests from Reuters for comment.
In the fiscal year ending March 31, Aster’s revenue increased 16% to $1.46 billion, while net profit reached $51.36 million.