NMC Healthcare, Saudi Arabia’s GOSI announce closing of JV agreement

NMC Healthcare, Saudi Arabia’s General Organization for Social Insurance (GOSI) and its investment arm Hassana Investment Company have announced the closing of the agreements signed on March 4, 2019.

The agreement is in relation to the formation of the joint venture (JV) in the Kingdom’s healthcare sector, a statement said on Sunday.

The JV is formed by NMC’s contribution of its five assets in Saudi Arabia apart from SAR 250 million ($66 million) of additional cash injection by NMC, as well as GOSI and Hassana’s contribution of their 38.88 percent stake in Tadawul-listed National Medical Care Company (Care) at a price of SAR 54 per share, the statement added.

Following the closing of the transaction, NMC owns 53 percent stake (through the combination of asset contribution and cash injection) and GOSI owns 47 percent stake (through a wholly-owned subsidiary) in the JV company – NMC Healthcare Saudi Arabia Company.

NMC will have operational control of the joint venture, the statement maintained.