Maharah’s subsidiary completes acquisition of 40% stake in SMS for SAR 426.5 mln

Logo of Maharah Human Resources Co.

Maharah Human Resources Co. (Maharah) announced that its wholly-owned subsidiary, Growth Avenue Investment Co. (GAC) completed, on Aug. 18, the deal to acquire a 40% stake in Saudi Medical Systems Co. (SMS).

In addition, GAC paid the relevant consideration of SAR 426.5 million in cash to the selling shareholders of SMS, the company said in a bourse statement today, Aug. 21.

The firm added that the acquired shares were transferred to GAC, and shareholders register at the Ministry of Commerce was updated.

The transaction was 15% financed from Maharah’s own funds, and the remaining was via loans from Al Rajhi Bank and Saudi British Bank (SABB).

GAC will be eligible for a share in SMS profit from Jan. 1, 2022.

In March, the subsidiary signed a non-binding memorandum of understanding (MoU) with SMS shareholders to acquire 40% of their shares, according to data available with Argaam.

In June, Maharah’s subsidiary obtained the General Authority for Competition’s approval on the economic concentration related to the acquisition of SMS.

SMS is a Saudi closed- joint stock company established in 1996. It specializes in providing catering to hospitals.

Maharah announced today that it secured a long-term syndicated Murabaha financing facility at SAR 362.5 million.

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