Amanat exits IMC KSA for AED 433 mln

Logo of Amanat Holding Co.

Dubai-listed Amanat Holdings announced that the Saudi Healthcare and Education Fund, indirectly wholly-owned by it, sold its 13.13% stake in International Medical Center (IMC) in Saudi Arabia to Kun Investment Holding for SAR 443 million (AED 433 million).

In a statement to Dubai Financial Market (DFM), Amanat said the positive impact of the deal is expected to reflect in Q3 2021.

The exit resulted in a total cash return of about AED 100 million, including dividends. The deal is projected to register a net profit of about AED 40 million.

Amanat stated that this exit is estimated at about 15x of the deal’s EBITDA multiple as of June 2021.

The exit is in line with Amanat’s strategy of divesting minority stakes where the impact is limited and ineffective. The company is looking to focus on investments in which it is an influential shareholder.

The exit enables it to move towards more specialized investment opportunities in healthcare and education business, and consolidate its investment base by building scale and synergies for future monetization.

Amanat has a financial liquidity of about AED 700 million to facilitate funding of future investments.

In January 2017, the Saudi Healthcare and Education Fund acquired its stake in IMC KSA, a 300-bed multi-disciplinary tertiary care hospital that serves Saudi Arabia’s Western Region and targets the high-end segment of the market.

According to data compiled by Argaam, IMC KSA’s capital amounted to SAR 750 million, and Fitaihi Holding Group owns 19.25% stake.

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