Aster DM, Blackstone-owned CARE Hospitals close to complete deal

Aster DM Healthcare and Blackstone-owned CARE Hospitals are nearing the conclusion of a significant deal that could reshape India’s healthcare landscape, sources told CNBC-TV18 on Thursday. On August 4, we had reported about the discussions between the two companies, aimed at expanding Aster DM’s hospital network.

According to sources, the deal will result in a new entity where Blackstone will hold 34%, TPG, which is also a stakeholder in CARE hospitals, will hold 11%, and the Moopen family, which owns 42% of Aster DM, will hold around 23%. The new entity’s leadership will feature executives from both Blackstone and the Moopen family. Azad Moopen is expected to be at the helm of the new entity, per sources.

Experts have said that this collaboration combines the 5,000-bed capacities of both Aster DM and CARE Hospitals, creating a robust 10,000-bed network and making the newly formed entity to the second biggest hospital chain in the country.

As per sources, the transaction will be finalised as a share-swap arrangement between the Moopen family and Blackstone.

Aster DM Healthcare’s chief executive, Dr Nitish Shetty tendered his resignation the same day CNBC-TV18 reported on the proposed deal with Blackstone and CARE hospitals in August. The company in a statement said that Shetty is stepping down to pursue ‘entrepreneurial opportunities’. Shetty was appointed as the CEO in March 2023 but his association with the company dates back to 2014.

Meanwhile, Aster DM Healthcare has a board meeting scheduled on Friday followed by an investor call. It is expected that through a preferential issue, the deal would be concluded and announced. CNBC-TV18 has reached out to Aster DM Healthcare and CARE Hospitals for a comment, response is awaited. CNBC-TV18