UAE – Amanat Holdings has significantly upped its stake in Sukoon International Holding Company, becoming the majority shareholder in the Saudi-based critical care medical company.
Following a merger of Sukoon with Cambridge Medical & Rehabilitation Centre (CMRC), Amanat plans to boost its bed capacity with an additional 1000 regional beds in the next three years.
“The transaction was completed through a non-cash share swap, whereby certain of the Sukoon shareholders received 15% of Amanat’s shares in CMRC in return for Amanat receiving additional shares in Sukoon,” the company said in a press release.
With the latest share purchase, Amanat holds an 85% stake in the post-merger entity that is a core component of its new market-leading healthcare platform.
In his address, Acting Chief Executive Officer of Amanat Holdings, John Ireland formally welcomed Sukoon into the Amanat Healthcare family, noting that there is an additional 300-bed expansion underway.
“We are working with the market-leading management teams at CMRC and Sukoon to integrate our post-acute care businesses, delivering both revenue and cost synergies and providing a strong platform for future growth,” said John Ireland.
He pointed out that this merger creates the largest post-acute care provider in the Gulf Cooperation Council (GCC) countries, asserting that they will grow profitability and margins at Sukoon in the near term.
“Amanat acquired a minority stake in Sukoon in 2015. Subsequently, we worked successfully with our colleagues and partners to transform it into one of the leading post-acute care and rehabilitation providers in the Kingdom of Saudi Arabia,” stated Ireland.
Amanat Healthcare consolidates the company’s portfolio of healthcare assets in the Middle East into a single platform with a footprint spanning the United Arab Emirates, Saudi Arabia, and Bahrain.
By combining Amanat’s long-term, post-acute, and specialist care assets in one entity, the platform aims to position itself as a key provider of specialised healthcare in the GCC.
Moreover, the formation of the new vertical enables Amanat to maximise growth opportunities within the GCC following a strong financial performance in the previous fiscal year.
Commenting on the recent deal, the Chairman of Amanat Holdings, Hamad Alshamsi, asserted: “The completion of the merger of Sukoon with CMRC marks an important milestone in Amanat’s strategy to realize shareholder value through active portfolio management.”
Alshamsi outlined that the merger places Amanat in a strong position to benefit from the significant post-acute care bed gap across the United Arab Emirates and the Kingdom of Saudi Arabia.
He further said that the merged entity complements Amanat Healthcare as the new platform consolidates its position as a market-leading provider of specialized healthcare in the GCC.
“The merged entity enhances the range of strategic value creation options for Amanat Healthcare, including a potential IPO in the near term,” underscored Alshamsi.
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