Aster Acquires Stake in Quality Care India Ahead of Merger
Deal News | Apr 30, 2025 | EIN
Aster DM Healthcare has strategically acquired a 5% equity stake in Quality Care India Ltd (QCIL) from Blackstone Capital Partners (BCP) and Centella Mauritius Holdings Limited-backed by TPG, in a ₹849 crore deal executed through a share swap. This transaction, in which Aster purchased 1,90,46,028 equity shares of QCIL, is a precursor to the anticipated merger between Aster and QCIL scheduled for completion later this year. As part of the transaction, Aster has issued 1,86,07,969 of its own shares to the previous owners. A merger plan, announced in November 2024, will result in a joint control structure with Aster's promoters holding 24% and Blackstone 30.7% of the merged entity. The post-merger entity is poised to become India's third largest private hospital chain, branding a network of 38 hospitals totaling 10,500 bed capacities across 27 states. Leadership roles post-merger will see Dr. Azad Moopen as Executive Chairman and Varun Khanna as MD and Group CEO.
Sectors
- Healthcare
- Private Equity
Geography
- India – Both Aster DM Healthcare and Quality Care India Ltd are operating within India, which will be the primary geographic focus of the merged hospital entity.
- Mauritius – Centella Mauritius Holdings, involved in the transaction, is based in Mauritius, indicating cross-border investment activities.
Industry
- Healthcare – The article primarily discusses the acquisition and merger activities within the healthcare sector, specifically focusing on hospital chains.
- Private Equity – The involvement of Blackstone, a prominent global private equity firm, highlights the private equity industry's role in the healthcare merger.
Financials
- ₹849 crore – The transaction value for the acquisition of a 5% stake in Quality Care India Ltd by Aster DM Healthcare.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Aster DM Healthcare | Buyer | Company | A healthcare company acquiring a stake in QCIL and leading the upcoming merger. |
| Quality Care India Ltd (QCIL) | Target Company | Company | The healthcare entity, supported by Blackstone, merging with Aster DM Healthcare. |
| Blackstone Capital Partners (BCP) | Seller | Company | A global private equity firm selling its stake in QCIL. |
| Centella Mauritius Holdings Limited | Seller | Company | Backed by TPG, involved in selling its stake in QCIL as part of the transaction. |
| Dr. Azad Moopen | Executive Chairman | Person | Founder and leader at Aster DM Healthcare managing the merger. |
| Varun Khanna | MD and Group CEO | Person | Current Group MD of QCIL, who will become MD and Group CEO of the merged entity. |