Aster Secures Approval for Merger with Quality Care India
Deal News | Apr 15, 2025 | EIN
The Competition Commission of India (CCI) has approved the merger of Aster DM Healthcare with Quality Care India Limited (QCIL), resulting in the formulation of a new entity named Aster DM Quality Care. Aster, a prominent healthcare provider with 19 hospitals under its operation in India, will undergo a rebranding process post-merger. Before amalgamation, Aster will acquire a 5% stake in QCIL from BCP Asia II TopCo IV Pte Ltd and Centella Mauritius Holdings, through primary share issuance. Post-merger, stakeholders like Centella, BCP, and other minority shareholders will retain certain stakes, with Centella holding slightly less than 10% but without control rights. The QCIL network consists of 26 healthcare facilities under brands such as CARE Hospitals, KIMS Health, and Evercare. Furthermore, CCI has sanctioned another transaction involving Alat Technologies and TKE Group, establishing a joint venture concentrating on elevators and escalators in the MENA region. Alat Technologies, a subsidiary of Saudi Arabia's Public Investment Fund, will acquire approximately 15% of TKE Group shares.
Sectors
- Healthcare
- Private Equity and Investment
- Manufacturing and Engineering
Geography
- India – Aster DM Healthcare, Quality Care India Limited, and their operations are based in India, making it a key geographical focus.
- Saudi Arabia – Alat Technologies, a subsidiary of the Public Investment Fund of Saudi Arabia, is involved in a joint venture with TKE Group focused on Saudi Arabia.
- MENA – The joint venture between Alat Technologies and TKE Group is planned to operate in the MENA region.
Industry
- Healthcare – The article discusses a merger involving Aster DM Healthcare and Quality Care India, companies operating in the healthcare service sector.
- Private Equity and Investment – The involvement of BCP Asia, Centella Mauritius Holdings, and their link to investment firms like Blackstone and TPG highlights the role of private equity and investment in the transaction.
- Manufacturing and Engineering – The article mentions Alat Technologies and TKE Group, focused on manufacturing and servicing elevators and escalators, indicating relevance to the manufacturing and engineering sector.
Financials
- 5% – Aster's stake acquisition in QCIL from BCP Asia and Centella before the merger.
- Less than 10% – Centella's stake in the merged entity Aster DM Quality Care Ltd.
- 15% – The shareholding Alat Technologies will acquire in TKE Group.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Aster DM Healthcare Ltd | Target Company | Company | A healthcare service provider operating 19 hospitals in India, part of Aster Group. |
| Quality Care India Ltd (QCIL) | Target Company | Company | Owns and operates 26 healthcare centres in India under brands like CARE Hospitals. |
| BCP Asia II TopCo IV Pte Ltd | Seller | Company | A company involved in the sale of a 5% stake in QCIL to Aster, owned by Blackstone. |
| Centella Mauritius Holdings Limited | Seller | Company | A company involved in the sale of a 5% stake in QCIL to Aster, controlled by the TPG group. |
| Competition Commission of India (CCI) | Regulatory Body | Government | Regulatory authority in India approving the merger. |
| Alat Technologies Company | Joint Venture Participant | Company | A subsidiary of Saudi Arabia's Public Investment Fund, involved in a venture with TKE Group. |
| TKE Group | Joint Venture Participant | Company | A global company involved in elevator and escalator manufacturing and services. |
| Public Investment Fund (PIF) | Owner of Alat Technologies | Company | The sovereign wealth fund of Saudi Arabia. |
| Blackstone Inc | Owner of BCP | Company | US-based private equity firm owning affiliates involved in QCIL. |
| TPG Group | Owner of Centella | Company | Investment company controlling Centella involved in QCIL. |