Dallah Healthcare to invest SAR 350 mln in Jeddah hospital

Dallah Healthcare Co. on Monday agreed with AWJ Investment Co. to invest SAR 350 million in the new Jeddah hospital, which will be directly financed from its profit along with other bank facilities.

AWJ will contribute in-kind shares represented in a 150,000 square meter land, valued at SAR 270 million, in Jeddah, the healthcare company said in a statement to Tadawul on Tuesday.

Both parties can terminate the preliminary agreement, if the required licenses are not obtained within one year from the signing date.

Dallah said that it expects a positive financial impact from the project in the long term, adding the deal does not involve any related parties.

Last April, the Tadawul-listed healthcare service provider signed a non-binding agreement with AWJ to set up a SAR 500,000 closed joint stock company to build and operate a full-service hospital in Manar district, North East Jeddah, Argaam reported.

Dallah will own a 56 percent stake in the new facility, while the rest will be held by AWJ.