Care shareholders clear Al Salam Health buyout

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.”