Block deal: Olympus to offload 5.05% stake in Aster DM for ₹835 crore

Private equity firm Olympus Capital Asia on Thursday (June 20) initiated a block trade in healthcare services provider Aster DM Healthcare, sources privy to the development said.

The base size of the block is 5.05% of the total equity, with an upsize option extending up to 10.1%, people familiar with the matter said. Sources said the total value of the block trade is ₹835 crore, with the potential to reach ₹1,670 crore if fully upsized.

The floor price for the block trade is set at ₹331 per share, representing a 7.1% discount to the last closing price, sources close to the development said.

In April this year, Aster DM Healthcare Ltd approved a special dividend of ₹118 per share. This dividend is attributed to the proceeds from the sale of the GCC business and the redemption of redeemable preference shares issued to the company by Affinity Holdings Pvt Ltd, a wholly-owned material subsidiary of Aster DM Healthcare.

In November 2023, Aster DM Healthcare announced plans to sell the equity shares held by its wholly-owned subsidiary, Affinity Holdings, in Aster DM Healthcare FZC to Alpha GCC Holdings Ltd. This separated the company’s India and GCC businesses to unlock long-term value by running two standalone entities.

During this process, a sovereign-owned private equity firm based in the UAE — a consortium of investors led by Fajr Capital — proposed to acquire a stake of 65% in Aster DM Healthcare’s GCC business, entering into a definitive agreement. This separation plan was approved by the company’s shareholders earlier this year in January 2024.

Shares of Aster DM Healthcare Ltd ended at ₹356.35, up by ₹4.80, or 1.37% on the BSE. CNBCTV18