Aster DM Healthcare Private, a well-known healthcare service provider in the Gulf Co-operation Council countries, has picked up an undisclosed majority stake in Hyderabad-based Sri Sainatha Multi-Speciality Hospital Private Limited (‘Prime Hospitals’).
Aster has invested $12 million in the Hyderabad-based company. The majority controlling interest is facilitated by a combination of issue of fresh equity shares and sale of some shares by promoters. A substantial portion of the stake buying by Aster, however, is through subscription to fresh share issue.
The induction of fresh funds will help Prime Hospitals to consolidate its presence in Hyderabad, and expand across Telangana, Andhra Pradesh and Odisha to create a cluster of multi-speciality hospitals in the region.
Prime Hospitals is reported to be a $10 million company, with an EBITA (earnings before interest, taxation and amortisation) of 20 per cent. It has two facilities in Hyderabad, and is planning to expand to Tier-II and Tier-III cities in Andhra Pradesh, Telangana and Odisha.
Aster DM Healthcare owns and manages the ASTER and MEDCARE brands of hospitals, clinics and pharmacies in the UAE, Qatar, Oman, Saudi Arabia, Jordan and the Philippines. It also has significant presence in Kerala and Maharashtra, and plans to expand its presence in the southern and western regions. It has recently commenced its first hospital in Bangalore. Veda Corporate Advisors (‘Veda’) was the exclusive advisor to Prime Hospitals and its promoters in the transaction.