Time: May 26, 2019
UAE-based NMC Healthcare has confirmed that it will form a joint venture in Saudi Arabia’s healthcare sector with the Hassana, the investment arm of the General Organisation for Social Insurance (GOSI) and its investment company, the kingdom’s largest pension fund.
The joint venture is formed by NMC’s contribution of five Saudi-based assets and $66 million of additional cash, as well as GOSI and Hassana’s contribution of their 38.88 percent stake in the Tadawul-listed National Medical Care Company (CARE) at a price of SAR 54 per share.
Following the close of the transaction, NMC owns a 53 percent stake in the newly formed NMC Healthcare Saudi Arabia Company –NMC KSA – while GOSI will own a 47 percent stake.
NMC will retain operational control of NMC KSA.
In 2018, NMC CEO Prasanth Manghat said that the company considered Saudi Arabia “a strategic priority” and that the then-proposed partnership with GOSI/Hassana “would offer a tremendous opportunity for both the companies to better serve the Saudi healthcare market.”
NMC and Hassana also announced that the JV acquired over 4.6m additional shares of CARE, representing 10.3 percent of the firm’s share capital. As a result, NMC KSA’s shares in CARE represent 49.2 percent of CARE’s share capital.