Dallah signs MoU to buy AYYAN’s stake in Al-Ahsa Medical, Al-Salam Medical

Logo of Dallah Healthcare Co.

Dallah Healthcare Co. signed on Feb. 25 a non-binding memorandum of understanding (MoU) with AYYAN Investment Co. to purchase its 97.4% stake in Al-Ahsa Medical Services Co., which owns Al-Ahsa Hospital in Al-Ahsa. In addition, Dallah also seeks to acquire AYYAN’s 100% ownership of Al-Salam Medical Services Co., which owns Al-Salam Hospital in Al-Khobar.

The deal would be concluded through a share exchange or as agreed by the parties, Dallah and AYYAN said in separate statements to Tadawul.

The MoU is in connection with the share-swap in Al Ahsa Medical and Al Salam Medical, held by AYYAN, against the issuance of new shares in Dallah by way of capital increase, or in a manner agreed by the parties.

The Saudi-listed firms have agreed on an initial valuation. The final value of the proposed transaction will be determined after the necessary studies and the due diligence process, the statements said.

The 180-day MoU is effective from the date it is executed, unless otherwise agreed by the parties in writing.

Dallah said it appointed AlJazira Capital as a financial advisor. AYYAN will appoint a financial advisor and determine the financial impact of the deal at a later stage.

There are no related parties to the deal, the statements said, adding that the transaction is subject to satisfactory completion of financial, tax and legal due diligence.

The deal remains subject to regulatory approvals and the greenlight from shareholders of both companies.

Dallah said the MoU is part of its growth and sustainability strategy that aims to expand its geographically reach within the Kingdom, contribute to improving the efficiency of services for its visitors and enhance the quality of services.

AYYAN noted that the MoU does not imply a commitment to enter into the proposed deal. Any developments regarding the proposed deal will be announced in due course, it added.