Aster DM Healthcare Limited Investment in Affinity Holdings Private Ltd
Aster DM Healthcare Limited (“the Company”) invested USD 4.9 million in Affinity Holdings Private Ltd (“Affinity”) to enable Affinity to meet specific payment obligations as agreed under the Sale and Purchase Agreement (“SPA”). This investment supported Affinity in addressing commitments, including payment leakages and indemnities, under the terms of the SPA.
Key Details of the Investment:
- Purpose: The investment aimed to help Affinity fulfill its contractual obligations outlined in the SPA and its amendments.
- Nature: A cash investment of USD 4.9 million was made in exchange for equity shares.
- Shareholding: The Company’s shareholding in Affinity remained at 100% after the investment.
- Business Focus: Affinity operates as an investment holding company, with a turnover of USD 13.04 million in the fiscal year 2023-24.
- Regulatory Compliance: The investment qualified as a related party transaction under the Companies Act, 2013, and LODR Regulations. It was executed at fair market value, based on an independent valuation report.
This investment formed part of a broader transaction to restructure the Company’s GCC business. The arrangement involved Affinity and Aster GCC Holdings Limited (formerly Alpha GCC Holdings Limited), where a portion of the transaction proceeds was retained to cover Affinity’s payment obligations under the SPA.
