Aster DM Healthcare quells merger rumours: Is Blackstone-backed Care Hospitals still in the race?

Aster DM Healthcare has officially responded to speculations regarding a possible merger with Blackstone-backed Care Hospitals. The clarification was made in an exchange filing following a news report by the company Fund Control September 18, 2024, suggesting that the two companies are in advanced discussions about a possible merger.

This triggered investigations by several stock exchanges, including the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), into the validity of the reported claims, the filing added.

Aster DM Healthcare shares closed up 1.82% at ₹On September 18, the NSE share price was 421.45. Aster DM Healthcare share price hit a 52-week high on April 15, 2024; ₹558.

In its formal response, Aster DM Healthcare said that while the company frequently explores strategic opportunities as part of its growth and expansion plans, no material events have occurred that require disclosure under the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) regulations.

In the filing, the company stressed that it remains committed to complying with all regulatory obligations and will disclose any significant developments as and when required.

What did Aster DM Healthcare say in its merger report?

Aster DM Healthcare also clarified that there was no significant impact on the company’s share price following the media reports and assured shareholders that any significant developments would be communicated through proper channels. “At present, there are no material events or information that require disclosure. The company will make appropriate disclosures as and when necessary in accordance with applicable laws,” the company’s statement read.

The clarification comes in response to market interest, especially after Blackstone-backed Care Hospitals emerged as a major player in the healthcare sector. The merger of the two entities could create one of the largest healthcare networks in India, sparking widespread speculation about the future of Aster DM Healthcare.