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Shareholders of National Medical Care (Care) signed off on the company’s full takeover of Al Salam Health Medical Hospital for SAR 44 mn, according to a filing to Tadawul. The company had lined up approval from the move from the General Authority for Competition for the acquisition earlier this month.
REFRESHER- Care inked a share purchase agreement back in June with Saudi Medical Care Group (SMG) — which owns 100% of Al Salam Health Medical and 49.2% of Care — to fully acquire its shareholdings in Al Salam. The acquisition will be financed through a mixture of the company’s existing cashflows and bank loans.
The rationale: The acquisition looks to expand Care’s healthcare offerings in the market and tap potential investments in the sector. The move is part of Care’s five-year strategy, announced in 2022, to extend its service offerings in Riyadh and widen its patient base by serving new target groups.
About Al Salam Health Medical Hospital: Located in Al Khobar with an area spanning 100k sqm and a 100-bed capacity, Al Salam is one of the largest private hospitals serving the Eastern Province, according to its website. Its revenues were up 10.6% y-o-y to SAR 93.1 mn in 2023.
ADVISORS- GIB Capital was tapped as Care’s financial advisor for the acquisition, with Law Firm of Alsalloum and Altoaimi acting as its legal advisor.
IN OTHER M&A NEWS-
#1- SALIC acquires stakes in another poultry player: Saudi Agricultural and Livestock Investment (SALIC) — a fully-owned subsidiary of the Public Investment Fund — has acquired a 12.6% stake in Ukrainian poultry producer MHP, acquiring 13.5 mn of its global depository receipts (GDRs) on the market, according to a disclosure (pdf) by MHP.
#2- Regulator greenlights Dallah’s acquisition of Ayyan Investment subsidiaries: The General Authority for Competition issued its non-objection to Dallah Healthcare’s planned acquisition of Ayyan Investment’s 97.4% stake in Al Ahsa Medical Services Company and its 100% stake in Al Salam Medical Services Company, according to a disclosure to Tadawul. The transactions are still pending approvals from the Capital Market Authority, the Saudi Exchange, and both companies' shareholders.
The pitch: Dallah Healthcare inked a binding SAR 660 mn share purchase and subscription agreement with Ayyan Investment to acquire the subsidiaries last month, whereby Dallah will acquire Ayyan’s 97.4% stake in Al Ahsa for SAR 409 mn and 100% of Al Salam Medical for SAR 251 mn “by way of a capital increase by issuing new shares in Dallah to Ayyan.”
