In confirmation of a CNBC-TV18 newsbreak, Aster DM Healthcare has announced a merger with Blackstone-backed Quality Care India Ltd. through a share swap ratio.

As per the merger, Aster DM will allot 1.86 crore shares of itself to acquire 1.9 crore shares of QCIL held by BCP Asia II TopCo IV Pte. Ltd. and Centella Mauritius Holdings Ltd. in Quality Care India.

The shares will be acquired by Aster DM at a price of ₹445.8 per share, by issuing shares at a price of ₹456.33 per share. The issue price is a 9% discount to Aster DM’s closing price on Friday.

Quality Care India is engaged in the business of providing healthcare and related services through a network of multi-speciality healthcare establishments across India and Bangladesh.
The acquisition will require in-principle approval of the stock exchanges and approval of the competition regulator the Competition Commission of India (CCI) as well.

Aster DM intends to complete the acquisition within 15 days of the date of shareholder approval or the date of the CCI approval, whichever is later.

CNBC-TV18 had reported on August 4 this year about the discussions between the two companies, aimed at expanding Aster DM’s hospital network.

Experts have said that this collaboration combines the 5,000-bed capacities of both Aster DM and CARE Hospitals, creating a robust 10,000-bed network and making the newly formed entity to the second biggest hospital chain in the country.

Aster DM Healthcare’s chief executive, Dr Nitish Shetty tendered his resignation the same day CNBC-TV18 reported on the proposed deal with Blackstone and CARE hospitals in August. The company in a statement said that Shetty is stepping down to pursue ‘entrepreneurial opportunities’. Shetty was appointed as the CEO in March 2023 but his association with the company dates back to 2014.

Shares of Aster DM Healthcare ended 2.4% higher on Friday at ₹500.55. The stock is up 24% so far in 2024.