US-based private equity firm Blackstone is in advanced talks with the Moopen family, the promoters of Aster DM Healthcare, to merge its unlisted hospital chain, Quality Care India (QCIL), with Aster DM. If the deal proceeds, Blackstone is expected to secure a majority stake in the new combined entity.
Quality Care India, which operates a 5,000-bed hospital network, is valued at approximately Rs 16,826 crore ($2 billion) according to industry sources. In contrast, Aster DM Healthcare, currently listed on the BSE, has a market valuation of Rs 18,424 crore as of the latest figures.
The merger would create a healthcare powerhouse with a total bed capacity of around 10,000, significantly enhancing its market position. Aster DM’s management, led by the Moopen family, would oversee the new organization alongside professionals from both Blackstone and Care Hospitals.
This strategic move follows Blackstone’s recent acquisition of a 72% stake in Care Hospitals. The merger is expected to be structured as a share swap rather than a cash transaction. This means that Aster DM’s current stakeholders, including the Moopen family who hold a 42% stake, will exchange their shares for those in the new entity, resulting in a dilution of their current holding as Blackstone increases its stake.
Additionally, Aster DM Healthcare’s CEO, Dr. Nitish Shetty, has resigned to pursue other entrepreneurial opportunities. His departure, effective after a 90-day notice period, coincides with the ongoing merger discussions.
The potential merger is poised to reshape the hospital sector landscape, positioning the combined entity as a formidable competitor to Apollo Hospitals. Industry stakeholders are closely monitoring the developments of this major transaction.
I’m a finance writer with three years of experience in investment analysis. At Investorwelcome , I translate complex financial concepts into clear, actionable insights to help investors navigate the market with confidence. Combining my solid academic background with practical industry knowledge, I’m dedicated to providing readers with accurate and timely information. My goal is to empower both new and seasoned investors by simplifying intricate data and offering strategic advice. When I’m not writing, I stay engaged with market trends and investment innovations to ensure my content remains relevant and valuable.
