Al Ahsa Development to fully acquire Al Salam for SAR 250 mln

Al Ahsa Development Co. (ADC) has signed an agreement to acquire a 100 percent stake in Al Salam Medical Services Co. for a total value of SAR 250 million under a share swap deal, the company said in a bourse filing on Wednesday.

Al Ahsa will hike its capital by 51 percent to SAR 740 million from SAR 490 million.

Accordingly, its total number of shares will be increased to 74 million from SAR 49 million.

Al Salam, which owns a hospital under construction in Al-Khobar city, was valued at SAR 250 million. The hospital has a final capacity of 495 beds, and is likely to begin trial operations by the end of this year.

On the other hand, Al Ahsa was valued at SAR 513.52 million, based on the stock closing price on Mar. 19.  The final value will be based on a 90-day average closing price, or on a par value of SAR 10, whichever is higher.

The swap ratio will be set following the approval of the Capital Market Authority (CMA).

The holding of new shareholders will stand at 33 percent. The deal includes board members, namely Ahmed Al-Khayyal and Raed Al-Mousa.

The binding agreement, which is valid until May 30, 2019, is renewable by mutural agreement.

The deal is also subject to the approval of regulatory authorities and Al Ahsa’s extraordinary general assembly.

No impact or risks are expected from the deal, the statement added.