...raises red flag on Aster DM's sale of Gulf business

Hospital chain Aster DM Healthcare's plans to sell its Gulf business may run into rough weather with voting advisory firm Institutional Investor Advisory Services (IIAS) raising concerns over the transaction.

- SAMIE MODAK

Recommending an 'against' vote on the resolution, IiAS has said there is no clarity on how Aster DM will utilise the proceeds that it will obtain by selling the unit, which contributes to bulk of its revenues.

In November, Aster DM had announced its plans to sell its whollyowned subsidiary Affinity Holdings, which conducts business in the Gulf Cooperation Council (GCC) region, to Alpha GCC for $1 billion.

Alpha GCC is 65 per cent owned by Gulf-based private-equity firms led by Fajr Capital and the remaining 35 per cent is held by promoter group Moopen family.