Dallah Healthcare completes sale of stake in Dr. Mohammed bin Rashid Al Faqih & Partners for SAR 498 million

Dallah Healthcare has announced the completion of the sale of its 31.21% stake in Dr. Mohammed bin Rashid Al Faqih & Partners to Dr. Soliman Abdelkader Fakeeh Hospital Company (Fakeeh Care) for a total cash consideration of SAR 497,983,407.

The transaction is part of Dallah Healthcare’s strategy to enhance the efficiency of its investment portfolio and strengthen its financial position and liquidity, supporting its growth and expansion plans. These plans include establishing new hospitals or acquiring existing ones, with a focus on assets that are fully owned and directly operated by the company.

The deal is expected to have a positive financial impact on Dallah Healthcare, including capital gains from the sold shares and anticipated savings in future financing costs. The company intends to use the proceeds primarily to reduce its current Murabaha facilities, thereby improving its financial leverage. Dallah Healthcare does not expect any material negative impact on its profitability in the coming quarters, as the divested company is in an expansion phase and has contributed only marginally to profits in recent periods.

Ownership of Dallah Healthcare’s stake in Dr. Mohammed bin Rashid Al Faqih & Partners has been transferred to Fakeeh Care. The buyer has paid SAR 466.77 million to Dallah Healthcare, while SAR 100 million of the total cash consideration (of which Dallah Healthcare’s share is 31.21%) has been placed in an escrow account for six months (or longer if a dispute arises) to cover any breaches or issues discovered in the target company after completion.

The transaction was completed after fulfilling all regulatory and contractual conditions and obtaining the necessary approvals from relevant authorities, including a no-objection decision from the General Authority for Competition regarding the resulting economic concentration, issued on June 14.

Dallah Healthcare receives more than 3.8 million patient visits annually through its extensive network of hospitals and specialty clinics, in addition to home care services. Supported by an experienced team and leading specialists, Dallah Healthcare operates according to the highest standards of quality and patient safety, upholding the professional and humanitarian values that have made it a trusted healthcare provider in the Kingdom.

Dallah Healthcare Group is listed on the Saudi Exchange’s main market (symbol: 4004, ISIN: SA135G51UI10).