On December 12, 2024, Aster DM Healthcare Limited disclosed an important update regarding its ongoing transaction with Affinity Holdings Private Limited ("Affinity") under the Segregation of GCC Business initiative. This update follows multiple disclosures made earlier, including on March 28, 2022, June 11, 2022, and January 15, 2024, providing the latest developments on the strategic steps to segregate the Company’s GCC operations.

As part of this transaction, Aster DM Healthcare has made a substantial investment of USD 4.9 million in Affinity. This investment aims to fulfill certain payment obligations outlined in the Sale and Purchase Agreement (SPA), entered into on November 28, 2023, between Affinity and Alpha GCC Holdings Limited (now rebranded as Aster GCC Holdings Limited). The investment is essential for Affinity to meet agreed obligations under the SPA, as detailed in the First Deed of Amendment (dated March 19, 2024) and Second Deed of Amendment (dated April 01, 2024).

Background of the Investment

The disclosed investment comes after a thorough assessment of Affinity’s financial standing, with the target entity having a paid-up capital of USD 1,000 before the issue, which has now increased to USD 49,01,000. The turnover for FY 2023-24 stands at USD 13.04 million. As part of the agreement, Aster DM Healthcare maintains its 100% shareholding in Affinity, with the investment helping the subsidiary fulfill its contractual commitments.

In alignment with earlier disclosures, the transaction proceeds from the segregation of business will be partially retained to ensure Affinity can meet its payment obligations, including addressing leakages and indemnities. As per the latest estimates, Affinity has a payable amount of USD 4.34 million, which will be settled within the agreed caps and limitations.

Key Details of the Transaction

Industry: Affinity’s principal activity lies in investment holdings, and it operates primarily in this sector, which is separate from Aster’s core healthcare business. The investment made by Aster will support Affinity’s business obligations under the SPA, ensuring smooth operations and regulatory compliance throughout the segregation process.

Regulatory Approvals: As per the transaction terms, no governmental or regulatory approvals are required for this investment, as the deal does not fall under regulatory restrictions.

The cash consideration for the transaction is being made via normal banking channels, and it does not involve any share swaps or other forms of payment. Aster DM Healthcare’s total consideration for the investment stands at USD 49,00,000, fully paid for equity shares of Affinity Holdings.

Impact on Aster DM Healthcare

Following the completion of the investment, Aster DM Healthcare will continue to hold a 100% stake in Affinity. This ensures that the company retains full control over the subsidiary’s activities while facilitating the contractual obligations arising from the SPA. The investment will be pivotal in enabling Affinity to manage the final stages of GCC business segregation and complete the process by December 2024.

As a company dedicated to providing quality healthcare solutions, Aster DM Healthcare is ensuring that its investment holdings are in line with its strategic objectives of focusing on long-term growth and sustainability. The company’s ongoing efforts to restructure and segregate its business will enable it to streamline operations and create a more focused business model moving forward.

On December 12, 2024, Aster DM Healthcare Limited disclosed an important update regarding its ongoing transaction with Affinity Holdings Private Limited ("Affinity") under the Segregation of GCC Business initiative. This update follows multiple disclosures made earlier, including on March 28, 2022, June 11, 2022, and January 15, 2024, providing the latest developments on the strategic steps to segregate the Company’s GCC operations.

As part of this transaction, Aster DM Healthcare has made a substantial investment of USD 4.9 million in Affinity. This investment aims to fulfill certain payment obligations outlined in the Sale and Purchase Agreement (SPA), entered into on November 28, 2023, between Affinity and Alpha GCC Holdings Limited (now rebranded as Aster GCC Holdings Limited). The investment is essential for Affinity to meet agreed obligations under the SPA, as detailed in the First Deed of Amendment (dated March 19, 2024) and Second Deed of Amendment (dated April 01, 2024).

Background of the Investment

The disclosed investment comes after a thorough assessment of Affinity’s financial standing, with the target entity having a paid-up capital of USD 1,000 before the issue, which has now increased to USD 49,01,000. The turnover for FY 2023-24 stands at USD 13.04 million. As part of the agreement, Aster DM Healthcare maintains its 100% shareholding in Affinity, with the investment helping the subsidiary fulfill its contractual commitments.

In alignment with earlier disclosures, the transaction proceeds from the segregation of business will be partially retained to ensure Affinity can meet its payment obligations, including addressing leakages and indemnities. As per the latest estimates, Affinity has a payable amount of USD 4.34 million, which will be settled within the agreed caps and limitations.

Key Details of the Transaction

Industry: Affinity’s principal activity lies in investment holdings, and it operates primarily in this sector, which is separate from Aster’s core healthcare business. The investment made by Aster will support Affinity’s business obligations under the SPA, ensuring smooth operations and regulatory compliance throughout the segregation process.

Regulatory Approvals: As per the transaction terms, no governmental or regulatory approvals are required for this investment, as the deal does not fall under regulatory restrictions.

The cash consideration for the transaction is being made via normal banking channels, and it does not involve any share swaps or other forms of payment. Aster DM Healthcare’s total consideration for the investment stands at USD 49,00,000, fully paid for equity shares of Affinity Holdings.

Impact on Aster DM Healthcare

Following the completion of the investment, Aster DM Healthcare will continue to hold a 100% stake in Affinity. This ensures that the company retains full control over the subsidiary’s activities while facilitating the contractual obligations arising from the SPA. The investment will be pivotal in enabling Affinity to manage the final stages of GCC business segregation and complete the process by December 2024.

As a company dedicated to providing quality healthcare solutions, Aster DM Healthcare is ensuring that its investment holdings are in line with its strategic objectives of focusing on long-term growth and sustainability. The company’s ongoing efforts to restructure and segregate its business will enable it to streamline operations and create a more focused business model moving forward.

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