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Thu 13 Feb 2020 09:28 AM

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Aster DM Healthcare granted approval for 100% ownership of its Dubai-based subsidiaries

The stake holding of the India-listed Aster group in its UAE-subsidiaries was so far capped at 49 percent as per the local ownership rules

Aster DM Healthcare granted approval for 100% ownership of its Dubai-based subsidiaries

Dr Azad Moopen, founder chairman and managing director of Aster DM Healthcare, was one of the first Indians residing in the UAE to be awarded a 10-year visa by authorities last year. Image: ITP Media Group

Aster DM Healthcare has been granted approval by UAE government to hold 100 percent equity stake in its Dubai-based subsidiaries, the company has announced.

The stake holding of the India-listed Aster DM Healthcare in its UAE-subsidiaries was capped at 49 percent, as per the local ownership rules.

The approval followed the decision of UAE government to grant 100 percent ownership to foreign companies in certain sectors, which included the healthcare sector.

“The company received approval of the UAE Government to hold 100 percent legal ownership in the subsidiaries in emirate of Dubai,” Aster DM Healthcare has said in a regulatory filing in India on Wednesday.

The company said it expected to complete the transfer of legal ownership in its subsidiaries in UAE by the end of the current financial year.

The Aster has also indicated that the stake increase by the group in its UAE subsidiaries will not result in any major cash outflow towards investment “since the company is already holding majority beneficial ownership in those subsidiaries”.

Aster said it was also in the process of obtaining approvals for hiking its stake to 100 percent in its subsidiaries in other emirates of UAE.

The Dubai-based ventures of Aster contribute majority of the group’s business operations in GCC.

Dr Azad Moopen, founder chairman and managing director of Aster DM Healthcare, was one of the first Indians residing in the UAE to be awarded a 10-year visa by authorities last year.

From a single clinic in 1987, the Dubai-headquartered Aster group is spread across 377 establishments in 8 countries across the Middle East and India. 

Currently one of the largest and fastest growing healthcare chains in the MENA region, Aster DM Healthcare runs a string of hospitals, clinic, diagnostic centre and retail pharmacies in the region. The group has over 20,500 employees, including 2,998 doctors.

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