Creating Value by Splitting Aster: Can One Minus One Equal Two?

Aster DM Healthcare (Aster), founded by Dr. Azad Moopen in 1987, is a prominent healthcare conglomerate with operations spanning hospitals, clinics, retail pharmacies, and diagnostic centers across India and the GCC. After its 2018 listing on India’s National Stock Exchange, Aster’s stock stagnated, revealing a market undervaluation of its GCC business. In 2021, Aster initiated a value discovery exercise, leading to the separation of its India and GCC businesses. Aster GCC became a private entity focused on the GCC region, while Aster India remained publicly listed.

In 2022, Aster sold a 65% stake in its GCC operations, held by Affinity Holdings, to a consortium led by Fajr Capital for $1 billion. As the transaction neared completion, Aster faced four key negotiation challenges: dividing global markets between the two entities, structuring shared services, accounting for medical value tourism, and pricing access to the GCC-built IT platform.