Dallah signs SAR 161.1 mln deal to acquire 78.6% stake in Makkah Medical Center

Dallah Healthcare Co. (DHC) signed, on June 29, the final agreement to acquire 78.59% stake, representing 2.38 million shares, in Makkah Medical Center Co. for a total value of SAR 161.1 million.

The company said in a bourse statement that DHC currently owns 7.5% of Makkah Medical Center Co. After finalizing the transaction, DHC will own 86.1% of the company’s shares.

The transaction will be financed through DHC’s internal resources in addition to local financial institutions.

Completion of the agreement is subject to a number of conditions, including obtaining the shareholders’ guarantees concerning their ownership of the shares to be sold and their right to transfer the ownership without any restrictions, and obtaining the approval of the relevant governmental authorities.

Makkah Medical Center hospital, owned by Makkah Medical Center Co., has a capacity of 120 beds and 40 clinics. Its total revenues increased from SAR 12.3 million in 2017 to SAR 35 million in 2018, and SAR 110 million in 2019.

The deal came in line with DHC’s expansionary strategy, in Makkah region to support its market standing in providing premium medical service.

The healthcare services provider expects the transaction to increase market capitalization, have a positive effect on the company’s financials, support revenues, and expand in different regions within the Kingdom.

The deal involved no related parties, the statement added.

According to data compiled by Argaam, DHC signed in February a non-binding memorandum of understanding (MoU) to acquire a majority stake in Makkah Medical Center Co.