SAUDI ARABIA – Backed by the Saudi Medical Care Group, the National Medical Care Company plans to purchase all shares of Chronic Care Specialized Medical Hospital for US$51.51 million (SAR 193.21 million).

This proposed acquisition comes after National Medical Care Company secured a US$93.30 million (SAR 350 million) Murabaha facility from the Gulf International Bank.

Apart from using the Murabaha facility to meet the company’s working capital requirements, the loan will also support the firm’s future expansion and acquisitions.

National Medical Care Company owns, establishes, equips, operates, manages, and maintains hospitals and health care units and centers in the Kingdom of Saudi Arabia.

Besides being a hospital operator, the Saudi Arabia-based company is engaged in the provision of medical services as well as the wholesale and retail trade of drugs, medical equipment, and supplies.

National Medical Care Company has signed a share purchase agreement with the Saudi Medical Care Group to acquire its 100% stake in Chronic Care Specialized Medical Hospital.

According to the official company release, shareholder and regulatory approvals are required for the completion of the proposed transaction.

These conditions include receipt of regulatory approvals or non-objection, the purchaser’s general assembly’s consent on the transaction, the seller’s general assembly’s consent on the transaction, and various customary conditions.

This proposed transaction is planned to be executed via a Share Purchase Arrangement recently struck between the Saudi Medical Care Group and National Medical Care Company.

As part of the terms of the new agreement, National Medical Care Company will reimburse the purchase price will be paid in cash.

The Saudi Arabian hospital operator disclosed that the purchase price will be paid in cash using internal resources and bank loans.

Upon completion of the million-dollar deal with SMCG, the National Medical Care Company will take over operations of Chronic Care Specialized Medical Hospital.

National Medical Care Company will gain control of the Jeddah-based hospital’s service portfolio, including comprehensive medical care, long-term nursing care, hospice care, and palliative care.

The proposed acquisition of the Jeddah-based hospital will play a crucial role in helping the Saudi hospital operator’s ongoing efforts to achieve its investment strategy via expansions in the healthcare industry.

Although the acquisition is contingent upon approval by shareholders and the necessary regulatory authorities, National Medical Care Company reported a net profit of US$27.75 million (SAR 104.1 million) in the first quarter of 2023.

It is worth highlighting that public companies currently own 49% of National Medical Care Company stock per publicly available data published by Simply Wall Street Pty Ltd.

Significant control over National Medical Care Company by public companies implies that the general public has more power to influence management and governance-related decisions.

NMC Health plc is the largest shareholder with 49% of outstanding shares, the Vanguard Group, Inc. is the second largest shareholder owning 1.9% of common stock while BlackRock, Inc. holds about 1.2% of the company stock.

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