Hospital chain Aster DM Healthcare has agreed to sell a majority stake in its Gulf business to an investor group based in the region for $1 billion as a part of a plan to separate the unit from its Indian entity. 

The offloading of a 65 per cent stake in the business to a consortium led by private-equity firm Fajr Capital brings to a close a year-long sale process after the business was seen as undervalued by some of its investors. 

The investor group also comprises UAE sovereign wealth fund Emirates Investment Authority, Al Dhow Holding Co, Wafra International Investment Co and Saudi Arabian billionaire Olayan family’s Hana Investment. 

Aster promoter, the Moopen Family, will hold the remaining stake in the unit. 

The move will help Aster focus more on its Indian business, in which it also plans to sell a 30 per cent stake for about $300 million as it plans to go on an expansion spree. 

Alisha Moopen, the managing director of Aster’s Gulf business, told the Reuters on Tuesday that the stake sale gave the company more flexibility to pursue growth. 

“I think there is a lot of opportunities for inorganic growth in India which we haven’t been able to pursue so actively because of these conflicting requirements and investment in capital requirements between the two regions,” Ms Moopen said. 

Aster DM currently operates 32 hospitals, 127 clinics and 521 pharmacies in India and the UAE. Shares of Aster DM closed down 1.48 per cent, valuing the company at about $2 billion.