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Aster DM shareholders approve separation of firm's India, GCC businesses

Aster DM earlier announced plans to separate its India and Gulf businesses in a deal valued at $1 billion

Aster DM Healthcare

A decision on this matter is expected to be made at a subsequent board meeting.

Sohini Das

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Aster DM Healthcare's shareholders have approved the resolution to separate the company's India and Gulf Cooperation Council (GCC) businesses. In an exchange notification on Tuesday, Aster DM Healthcare stated that 99.86 per cent of the total votes cast were in favour of the resolution. This involved the sale by Affinity Holdings Private Limited, a wholly owned subsidiary of Aster DM, of its entire stake in entities conducting business in the GCC region to Alpha GCC Holdings Limited. The resolution was thus carried as an ordinary resolution passed by a majority of public shareholders, as mentioned in the notice dated December 22, 2023.

Aster DM earlier announced plans to separate its India and Gulf businesses in a deal valued at $1 billion. Last Monday, the board of directors reviewed the progress of the transaction between Affinity Holdings and Alpha GCC Holdings, which pertains to the segregation of the company’s GCC business. The company is set to receive $1.001 billion from the proposed sale, with $903 million to be paid upon closing. The board expressed its intention to consider distributing 70-80 per cent of the upfront consideration, amounting to $903 million, as a dividend to its shareholders. This would translate to approximately Rs 110-120 per share. A decision on this matter is expected to be made at a subsequent board meeting.

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First Published: Jan 24 2024 | 10:35 AM IST

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