Dallah Health says deal to acquire Bagedo & Erfan Hospital interrupted

24/03/2015 Argaam
Dallah Healthcare Holding Company (Dallah Health) said on Tuesday that the plan to acquire Bagedo & Dr. Erfan General Hospital Co. LLC has been interrupted, as the sellers failed to meet certain conditions already agreed upon in the sale and purchase agreement (SPA).
 
The company said in a 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, which is due on March 31. This resulted in ceasing the SPA, except for certain provisions, 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 longstop date with the sellers in order to settle remaining conditions, and resolve new due diligence findings.
 
Dallah said it is currently weighing its options after receiving Begado’s notice, and will announce any further developments on Tadawul.

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