UAE’s NMC, GOSI subsidiary plan new healthcare company in Saudi

UAE’s NMC Health Plc signed a non-binding agreement to form a new national healthcare company with Saudi Arabia’s Hassana Investment Company (Hassana), the investment arm of the General Organization for Social Insurance (GOSI), it said in a statement on Monday.

The proposed joint venture will be formed through contribution of existing assets by both NMC and GOSI’s investment in Tadawul-listed National Medical Care Company (Care).

The new joint venture will be one of the “largest private healthcare operator” in the Kingdom with a combined bed capacity of 1,489 (664 beds contributed by NMC and 825 by Care).

NMC will retain a majority stake and operational control in the joint venture, while GOSI will continue to own a “significant indirect stake” in Care through the proposed venture.

Under the terms of the agreement, GOSI/Hassana will transfer their 38.9 percent stake in Care at a price of SAR 70 per share with NMC undertaking revaluation of its assets at the joint venture and NMC Health Plc level.

NMC will hold a voting majority in the proposed joint venture, the statement added.

The formation of the JV is subject to regulatory approvals and signing of definitive agreements after completion of necessary due diligence by both the parties.

On Sunday, Care said Hassana Investment Company has signed a non-binding share swap agreement with NMC Health.

The deal is not expected to have an impact on Care’s strategy, business or employees, it added.

NMC reported gross assets of $3 billion and profits before tax of $210.4 million for the year ended Dec.31, 2017. For the same period, CARE reported gross assets of $380 million and profits before tax of $26.7 million.