Aster DM Healthcare Ltd. receives overwhelming support from its shareholders to separate the GCC business

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Aster DM Healthcare Ltd. receives overwhelming support from its shareholders to separate the GCC business
Aster DM Healthcare Ltd. receives overwhelming support from its shareholders to separate the GCC business

Aster DM Healthcare aims to be among the top 3 integrated healthcare providers in India.

Bengaluru, January 24, 2024: Aster DM Healthcare Ltd. (NSE: ASTERDM; BSE: 540975) has received the requisite majority of shareholder votes for the separation of the GCC business from the Indian operations.

Voting on the two resolutions proposed by the company closed on January 22, 2024.

In respect of Resolution 1, which is the resolution approving the sale of the GCC business as a related party transaction, 99.86% of the eligible votes were in favour of this resolution. It is to be noted that since this resolution was for approving a related-party transaction, the related parties were not eligible to vote for approving the transaction.

Resolution 2, being the resolution for approving the sale of a material subsidiary, was approved by shareholders with 99.96% votes in favour of the resolution.

Expressing satisfaction on the voting outcome, Dr. Azad Moopen, Founder and Chairman, Aster DM Healthcare, said: “We are glad that shareholders have appreciated the long-term value-unlocking opportunity in the separation of the two businesses and have strongly supported the transaction with a landslide vote in favour of the transaction. The investors, too, have shown patience and trust in the company throughout this period. As disclosed earlier, we are looking to declare the previously announced dividend soon upon relevant approvals being obtained upon closing of the transaction. The proposed transaction will now create two geographically focused pure-play entities, each with its own capital allocation policy. The promoters remain committed to both the India and GCC entities and will continue to manage the business as earlier. The Indian healthcare market, with a population of 1.4 billion to serve, is poised for rapid and sustainable growth in the next few years. With its aggressive growth plans, Aster DM Healthcare aims to be among the top 3 integrated healthcare providers in India.”

Post-closing of the proposed transaction, the company is desirous of considering distributing 70–80 percent of the upfront consideration of $903 million as a dividend to its shareholders in the range of

₹110 to ₹120 per share, subject to approvals required under the law. The closing of the transaction is subject to the completion of certain conditions precedent, which are in advanced stages of completion.

The company also plans to boost its India presence by adding 1500 beds in the next 2–3 years to take the total bed capacity to more than 6,000 beds. At present, Aster operates in five states with a network comprising 19 hospitals, 13 clinics, 226 pharmacies, and 251 patient experience centers.

Details of the voting results have been posted on the websites of the exchanges. The voting results, along with the scrutinizer’s report, are available on the company website at www.asterdmhealthcare.com and the website of the exchanges at www.nseindia.com/******.

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