JV has been formed between –
- Aster Pharmacies Group LLC (APG) – a company registered in Dubai and a material subsidiary of Aster DM Healthcare Limited (ADHL).
- Abdulmohsen Al Hokair Holding Group (AAH) – the group was started in 1975 to invest in the sectors of entertainment and hospitality. Group’s projects include 92 entertainment centers and 35 hotels spread in Saudi Arabia and UAE
Initially APG and AAH will hold 49% and 51% equity in the JV. However, effective March 31, 2025, APG will have option to buy additional 11% from AAH – 2% at par value + 9% at fair market value. If exercised, this will take APG’s stake in the JV to 60%.
Purpose of the JV
- Set-up 250+ Pharmacy stores across the Kingdom of Saudi Arabia (KSA) over a period of next 5 years. Stores will be selling the products across Nutrition, Baby care, Skin Care, Home Healthcare etc. The objective is to sell Aster’s Pharmacy’s in-house products.
- To further expand the Business of the JV Company and potentially undertake the following activities in future:
- set-up outpatient centre facilities; and
- set-up a healthcare manufacturing facility in KSA to manufacture the above products locally.