Allen & Overy has led on two major deals in the UAE.
The firm acted as counsel to a consortium led by Fajr Capital on the acquisition of a 65% stake in Aster DM Healthcare FZC, the holding company of the Gulf Cooperation Council (GCC) business of Aster DM Healthcare.
The deal involved the separation of Aster DM Heathcare’s India and GCC businesses into two distinct standalone entities, with founders the Moopen family continuing to manage and operate the GCC business, retaining a 35% stake after the sale of the remaining 65% to the Fajr Capital-led consortium.
The current market capitalisation of the combined India and GCC business stands at around $2 billion, while the transaction values the GCC business at an enterprise value of $1.7 billion and an equity value of $1.0 billion, the firm said in a statement.
Fajr Capital is a UAE-based private equity firm which invests in the Middle East and Southeast Asia, and is owned by prominent sovereign wealth funds from Abu Dhabi, Brunei, and Malaysia, and private investors from the Gulf region and beyond.
“We continue to see M&A activity in the GCC across demographic-driven sectors, including social infrastructure, and are excited by the potential of digital transformation within the healthcare space,” said Middle East head of corporate and partner David Foster, who led the Allen & Overy team.
Baker McKenzie advised Aster DM Healthcare on the separation and the sale of its GCC healthcare business to Alpha GCC Holdings, which is owned by the promoter group of Aster India and funds managed by private equity firm Fajr Capital Advisors.
The transaction is expected to be completed in the first quarter of 2024.
The Baker McKenzie cross-practice team included lawyers from the firm’s offices across Dubai, London, Abu Dhabi and Riyadh. The corporate team was led by Dubai-based corporate M&A partner Abeer Jarrar and London-based corporate finance partner George Marshall.
Separately, Allen & Overy has also counselled the Roads & Transport Authority (RTA) and Dubai Taxi Company on the initial public offering and listing of Dubai Taxi on the Dubai Financial Market (DFM).
The government of Dubai has floated a number of assets over the last 12 months, including Dubai Electricity and Water Company (DEWA), road-toll business Salik, and district cooling concern Empower.
The IPO involved 25% of the share capital of Dubai Taxi, with net proceeds of around $315 million, valuing the business at $1.26 billion.
The IPO was 130 times oversubscribed, the highest oversubscription level ever for a Dubai IPO, demonstrating very strong investor demand, the firm said in a statement.
The IPO market in the region has been hot of late. “This is the fourth major privatisation by way of IPO that we have advised on in the UAE in the last year, demonstrating our market-leading expertise and experience in this area,” said interim global managing partner Khalid Garousha.
Clifford Chance advised the underwriters to the issue. Bank of America, Citibank and Emirates NBD were joint global coordinators and EFG and First Abu Dhabi Bank joint bookrunners. The cross-border team was led by Dubai ECM partner Mike Taylor, with support from a core team in Dubai and London.
