AYYAN, Dallah complete Al-Salam-Al-Ahsa acquisition

Under the deal, Dallah will pay SAR 143.4 million in cash to AYYAN, reflecting AYYAN’s capital contribution to Al-Salam and the deduction of Al-Salam’s accumulated losses, which exceeded SAR 145 million.

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Dallah also agreed to settle amounts lent by related parties - SAR 63 million to AYYAN and SAR 113.46 million to Al-Othman Holding Co, the statement added.

These loans were settled and paid to AYYAN simultaneously with the cash payment.

Furthermore, the parties agreed that Al-Ahsa would continue to pursue the collection of its receivables from third parties throughout 2025.

If not collected, AYYAN will incur a financial obligation of no less than SAR 30.97 million, as per the acquisition and subscription agreement. AYYAN will then recognize this obligation, if any, in its financial statements at the relevant time.

The financial impact of the transaction includes that Al-Ahsa’s book value as of the disposal date stood at SAR 232.1 million, while Al-Salam’s book value was SAR 212.79 million. These figures are unaudited and may change when Q1 2025 financial statements are released.

AYYAN received SAR 143.37 million in cash compensation, reflecting its capital contribution to Al-Salam, and SAR 63 million for funds injected into Al-Salam.

The total cash received by AYYAN amounted to SAR 206.37 million. In addition, AYYAN received 3.89 million shares in Dallah, representing 3.83% of Dallah’s capital. The fair value of these shares was SAR 487.48 million as of March 23, 2025.

The disposal profit for Al-Salam and Al-Ahsa totaled SAR 417.55 million. The financial impact on equity accounts will be disclosed with the Q1 2025 results. The company will also assess the need for additional provisions for Al-Ahsa’s receivables, which will be included in the Q1 2025 financial statements.

In a separate statement, Dallah confirmed that the acquisition procedures for AYYAN’s shares in Al-Ahsa and Al-Salam are complete. The financial impact of the transaction will be reflected in the preliminary Q1 2025 financial statements.

Consolidation of the acquired companies will begin after the transfer of control in March 2025. The shareholder records for Al-Salam and Al-Ahsa were updated to reflect Dallah’s ownership as of March 16, 2025. Replacement shares were deposited into AYYAN’s investment account on March 23, 2025, and the full cash compensation was paid on April 6, 2025.

Dallah clarified that AYYAN is not a related party, and therefore, no related-party transactions are involved.

In August 2024, Dallah and AYYAN signed an acquisition and subscription agreement, under which Dallah acquired 97.4% of Al-Ahsa’s capital (owner of Al-Ahsa Hospital in Al-Ahsa) and 100% of Al-Salam’s capital (owner of Al-Salam Hospital in Al-Khobar). In March 2025, shareholders of both companies approved the sale of shares in exchange for new shares in Dallah.