Aster DM Healthcare Announced a Merger with Care Hospitals

Aster DM Healthcare is a healthcare provider based in the Middle East, India, and other regions. It operates a network of hospitals, clinics, and pharmacies. The company was founded in 1987 by Dr. Azad Moopen in Dubai, UAE, and has since grown into one of the largest healthcare groups in the region. 

Aster DM Healthcare Merger With CARE Hospitals

Aster DM Healthcare shares advanced 4.9% on BSE in Monday’s trade and logged an intraday high of ₹524.5 per share. The counter saw buying after the company announced a merger with Blackstone-backed CARE Hospitals with the Bengaluru-based company, leading to the creation of Aster DM Quality Care.

Aster DM will acquire 19 million equity shares of Quality Care India (QCIL) from Blackstone and Centella at ₹445.8 per share by issuing 18.6 million of its own shares to QCIL’s shareholders at ₹456.33 per share, as per the filing. 

The Merged Entity Will Be Valued At ₹43,000 Crore

The merged entity will be valued at  $5 billion (₹43,000 crore). Its revenue will be ₹7,314 crore. Based on the swap ratio recommended in the valuation report, the Aster promoters will hold 24% and Blackstone 30.7% in the merged entity, with the balance of 45.3% held by the public and other shareholders.

All About Care Hospitals 

Founded in 1997 by a team of India’s leading cardiologists, CARE Hospitals started its journey as a 100-bed heart institute with a core team of 20 cardiologists, 1 operating theatre, and 1 catheterisation laboratory. 25 years later, the CARE Hospitals Group is a multi-speciality healthcare provider with 17 healthcare facilities serving 7 cities across 6 states in India. 

Stock Price Performance  

Aster DM Healthcare Ltd. stock traded 5% up today and high traded at ₹524.65 per share in NSE. Currently stock is slightly down and trading at ₹497.00 per share. In the past year, Aster DM Healthcare shares have gained 24.6%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.