- 16 Jan 2024
- ICICI Securities
ASTER TO CONSIDER SIGNIFICANT DIVIDEND PAYOUT FROM GCC DEAL
ASTERDM - 569 Change: -16.60 (-2.83 %)News: Aster DM board plans to distribute a majority of proceeds of its stake sale in the GCC business which was fixed at US$ 1.01 billion. Of this, US$903 million will be received at the closing of the deal, and the rest on fulfillment of certain conditions. After considering future expansion plans, capex requirements, and cash reserves, the Board intends to distribute 70-80% of the upfront consideration as dividend in the range of Rs 110-120 per share. The proposed declaration is subject to completion of the transaction including receipt of shareholder approval for the transaction, approval of Affinity to distribute the transaction proceeds to the company, and receipt of approvals required under corporate laws for dividend distribution, including Board approval.
Views: The payout, if happens is significant even after considering the Capex and expansion requirements of the India business. This being an international transaction, technical modalities will be an important consideration.
Impact: Positive