Dubai's Aster DM Healthcare clarifies reports on stake sale
Dubai-based Aster DM Healthcare has issued a clarification on media reports that came out on Friday that the group is looking to sell a majority stake in its Gulf-based business, but implied that the company is considering a reorganisation.
Media reports on Friday said, citing sources, that private equity firm Fajr Capital and Dubai financial services firm Gulf Islamic Investments have been short-listed as buyers for a stake sale of more than 50% in Aster's Gulf business.
"While we don’t comment on market speculation related to names of companies, financial value, timelines etc., we would like to clarify that any information circulating around this subject does not accurately capture the terms or nature of the proposed reorganisation. The company will make disclosures to the stock exchanges when required under applicable laws,” Aster said in a statement on Friday.
The statement added that all relevant information related to the "group re-organisation and investors refresh for the GCC business" has been reported to the stock exchange in accordance with applicable law.
Aster Chairman Azad Moopen told Zawya in a video interview last year that its board had approved a restructuring of the company and that investment bankers were looking at various options, including a potential listing of the Gulf business in Dubai or Abu Dhabi.
Aster, which is listed in Mumbai, operates hospitals, clinics and pharmacies across the GCC and India.
Mideast Stocks: Abu Dhabi gains ahead of Adnoc Gas IPO, Dubai weighed by ex-dividend stocks
Adnoc Gas will raise roughly $2.5 billion out of an order book that topped $124 billion, making it the largest IPO in Abu Dhabi. The company is expected to begin trading on March 13.
In Abu Dhabi, the index advanced 0.4%, extending gains to the fourth session, as UAE's largest listed firm, International Holding Company jumped 1.3%, while Marine Construction firm National Marine Dredging Company climbed 2%. Among gainers, Adnoc Drilling Company rose 2.4% after the firm signed an agreement to purchase 10 newbuild hybrid power land drilling rigs for $252 million.
Sentiment in Abu Dhabi's markets could lean on the bright side, thanks to improving activity in non-oil sectors as well as the success of Adnoc Gas’ IPO, said Fadi Reyad, Chief Market Analyst at CAPEX.com MENA.
Dubai's main market index, however, settled 0.5% lower, dragged by losses in banking sector stocks. Top lender Emirates NBD Bank plunged 4.1% and Mashreqbank tumbled 5.3% as both stocks were trading ex-dividend. Separately, the United Arab Emirates' economy expanded 7.6% last year, a senior official said on Thursday, about double the rise in gross domestic product (GDP) recorded in 2021 as the Gulf state rebounded sharply from the Covid-19 pandemic.
Dubai PE Firm Fajr in Talks to Buy Aster DM Healthcare’s Gulf Business - Bloomberg
Dubai-based private equity firm Fajr Capital is part of a consortium seeking to buy a majority stake in Aster DM Healthcare Ltd.’s Gulf business, according to people familiar with the matter.
The group includes other Middle Eastern investors and talks are at an advanced stage, the people said, asking not to be identified as the information isn’t public. The potential deal may carry a value of about $500 million, the people said.
Discussions are ongoing and there’s no certainty they’ll lead to a transaction, the people said. A representative for Fajr declined to comment and a representative for Aster wasn’t immediately available to comment.
Aster shares were up about 3% in Mumbai on Friday.
The firm, which operates hospitals, as well as hundreds of clinics and pharmacies across India and the Gulf region, has been working with advisers to hive off its Mideast business, Chairman Azad Moopen told Bloomberg in 2021.
Aster has been expanding in India and plans to add hundreds of hospital beds in the South Asian nation. More than half of Aster’s hospitals are in the country, but that market accounts for just about a quarter of its revenue.
“India is not giving that value to the GCC business, it’s giving discount to the GCC business,” Moopen said at the time. “We would like this to be seen separately, so that is something we are looking at.”
Peninsula Real Estate in Talks With Abu Dhabi Firm Over Pre-IPO Funding - Bloomberg
Peninsula Real Estate is in talks with Abu Dhabi investment group Yas Holding to secure funding ahead of a planned initial public offering, according to people familiar with matter.
The listing in Abu Dhabi is likely to be announced in the first half of the year and could raise about $550 million, the people said, asking not to be identified as the information isn’t public.
Details on the size of the potential investment weren’t immediately available. Discussions are ongoing and there’s no certainty they’ll lead to a transaction, the people said.
Representatives for Peninsula and Yas weren’t immediately available for comment.
Peninsula was initially considering listing a real estate investment trust in London, in a deal that would have made it the first company with significant assets in the United Arab Emirates to do so since 2019.
It later abandoned those plans in favor of an offering in Abu Dhabi, attracted in part by the city’s initiatives including a dedicated IPO fund as well as the strength of the local market that’s seen a flurry of listings over the past year. Peninsula also has a partnership with the Abu Dhabi Investment Office.
The firm is working with Emirates NBD PJSC, First Abu Dhabi Bank PJSC, HSBC Holdings Plc and Morgan Stanley on the share sale, Bloomberg reported last year.
UAE's ADNOC prices gas business IPO near top of range | Reuters
State oil giant Abu Dhabi National Oil Co (ADNOC) on Friday set the final price for its initial public offering, valuing the company at about $50 billion after drawing record demand. It will become Abu Dhabi's largest listed company.
ADNOC Gas' share price was set at 2.37 dirhams per share, near the top end of the price range that was set at 2.25 to 2.43 dirhams a share, ADNOC said in a statement.
Proceeds from the IPO came to roughly $2.5 billion out of an order book that topped $124 billion, ADNOC said. That exceeded demand for Saudi oil giant Aramco's 2019 IPO, which raised $25.6 billion and remains the world's largest.
The Middle East bucked global trends last year to raise some $21.9 billion through IPOs, according to Dealogic. That was more than half the total for the wider Europe, Middle East and Africa region.
ADNOC last week said it would increase the stake offered to investors to 5% from 4% due to strong demand for the deal, Abu Dhabi's largest IPO.
ADNOC Gas is expected to begin trading on March 13.
