Aster DM Healthcare Invests in Renewable Energy through Oyster Green Acquisition

Aster DM Healthcare, a leading healthcare provider in India and the UAE, recently announced a strategic move towards sustainable operations. On April 17, 2024, Aster DM Healthcare, along with its subsidiary Malabar Institute of Medical Sciences (MIMS), signed a definitive agreement to acquire a 26% stake in Oyster Green Hybrid Two Private Limited.

Aligning with Sustainability Goals

This acquisition signifies Aster DM Healthcare’s commitment to environmental responsibility. Oyster Green specialises in building and managing captive solar power plants. By acquiring a stake in Oyster Green, Aster DM Healthcare gains access to clean and reliable renewable energy. This move aligns perfectly with its stated goals of reducing its carbon footprint and promoting environmental sustainability.

Objective of the Acquisition

Aster and MIMS have approached the power producer to establish a captive solar power plant to meet a portion of their facility’s electricity needs through renewable energy sources. After mutual discussions, Oyster Green Hybrid Two Private Limited has agreed to construct, develop, install, commission, operate, manage, and maintain an 18 MWp captive solar power plant at the Project Site in Kerala. All of the electricity generated and net production will be purchased by Aster and MIMS.

A Collaborative Approach to a Greener Future

The agreement between Aster DM Healthcare, MIMS, and Oyster Green highlights a growing trend within the healthcare industry. Hospitals and medical institutions are increasingly recognising the importance of sustainable practices and are actively seeking solutions to reduce their environmental impact.

Consideration

Aster and MIMS have signed a share purchase agreement to acquire 70,00,000 (26%) shares of Oyster Green Hybrid Two Private Limited. Pursuant to the said acquisition, Aster shall hold 16%, and MIMS shall have 10% in Oyster Green Hybrid Two Private Limited for a total consideration of ₹7,00,00,000.

Transaction Timeline

The company will make 50% of the equity investment within 35 days from the execution date. The remaining 50% shall be invested 2 months before the commercial operations date. The transaction is expected to be completed on or before December 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.