Blackstone’s Health ‘CARE’ Plans Gets Bigger, Inks 50:50 All Share Deal With Aster DM

The hospital acquisitions of Blackstone, a private equity firm, is getting bigger by the day. Blackstone gained controlling stakes in two South Indian hospital chains– Hyderabad’s CARE Hospitals and KIMS (Kerala Institute of Medical Science) in May 2023 for an investment of Rs 8300 crore. The combined entity under the CARE brand name has emerged as the fourth largest hospital group in India. Now, Blackstone is believed to have struck an all share deal with Aster DM Healthcare to merge their hospital entities under the brand name — Aster DM Quality Care Pvt Ltd. The merger, reported to be in the ratio of 50:50 is between Aster Healthcare and CARE Hospitals. The promoters are expected to approach the National Company Law Tribunal soon. The deal is subject to clearance from the Competition Commission of India. The deal, which would be a share swap agreement, will see the Azad Moopen family’s 42% in Aster DM diluted in the joint entity and Blackstone’s increased. Aster Healthcare is today valued at Rs 19,068 crore and CARE at Rs 16,800 crore. The merger would place the new entity as a major hospital chain with Aster having 5000 beds capacity and CARE another 5000 beds. Apollo Hospital is the biggest hospital chain in this segment. Dr Azad Moopen, chairman of Aster is expected to head the new entity as executive chairman with a professional management team running the day-to-day affairs.