Dallah Health calls off acquisition of Bagedo & Dr. Erfan General Hospital

Dallah Healthcare Holding (Dallah Health) has scrapped plans to fully acquire Bagedo & Dr. Erfan General Hospital Co. LLC, as the sellers failed to meet completion conditions already agreed upon the sale and purchase agreement (SPA), the company said in a statement to Tadawul.

The deal was cancelled because several conditions were not met by the long-stop date, which expired on March 31​.

The company said in an earlier statement to Tadawul that it received a letter on March 23 from the sellers, Bagedo Trading Holding Co. LLC and Mohamed Ahmed Erfan & Sons Holding Co. LLC, expressing their decision to not extend the long-stop date. This resulted in the termination of the sales and purchase agreement, Dallah added.  

In early October, Dallah Health signed a deal with Bagedo Trading and Mohamed Ahmed Erfan & Sons to buy the entire share of the hospital. However, some agreed upon conditions were not satisfied, and new due diligence concerns had also been identified. 

The company at the time discussed extending the long-stop date with the sellers in order to settle remaining conditions and resolve new due diligence findings.