NMC Health Plc UPDATE ON PROPOSED ACQUISITION OF AL ZAHRA (3689Y)
02 March 2017 - 10:56PM
UK Regulatory
TIDMNMC
RNS Number : 3689Y
NMC Health Plc
02 March 2017
2 March 2017
NMC HEALTH PLC PROVIDES UPDATE ON PROPOSED ACQUISITION OF THE AL
ZAHRA HOSPITAL
NMC Health plc (LSE: NMC) ('NMC' or the 'Company'), the leading
integrated private healthcare provider operating across the United
Arab Emirates and Gulf Cooperation Council region (the 'UAE' and
'GCC', respectively), today provides an update on the proposed
acquisition of the Al Zahra Hospital in Sharjah, one of the largest
private hospitals in the UAE, as announced on 14 December 2016. In
line with previous guidance, NMC confirms that the completion
process of the proposed acquisition of the Al Zahra Hospital is
on-track to complete before the end of March 2017. Since the start
of 2017, the Al Zahra Hospital has been trading ahead of management
expectations.
Dr. B.R. Shetty, Chief Executive Officer & Executive
Vice-Chairman of NMC, commented:
"I am pleased to confirm that we are on-track to complete the
proposed acquisition of the Al Zahra Hospital in the first quarter
of this year, representing another major step in strengthening our
position as the leading integrated healthcare operator in the UAE
and GCC region. The proposed acquisition is fully in line with our
strategy and demonstrates our focus on delivering long-term growth
of our strategic and competitive advantages to sustainably enhance
shareholder returns."
Prasanth Manghat, Deputy Chief Executive Officer of NMC,
commented:
"The acquisition of Al Zahra Hospital, one of the leading and
most reputable private hospitals in Sharjah and across the UAE, is
strategically very significant for NMC. This attractive and
complementary deal is expected to deliver significant benefits for
patients and value for shareholders as we continue to expand our
top-in-class offering, track record and brand in the region."
Al Zahra Hospital - one of the largest private hospitals in the
UAE, accelerates NMC's presence in growing Sharjah healthcare
market
The Al Zahra Hospital in Sharjah is one of the largest private
hospitals in the UAE, operating 137 active inpatient beds, serving
approximately 400,000 outpatients and 23,000 inpatient bed days per
year. This asset would be difficult to replicate and considerably
expands NMC's capacity in the region.
The proposed acquisition complements NMC's existing network of
seven out-patient medical centres in Sharjah, the third most
populous emirate in the UAE, and further strengthens its position
as the largest private healthcare provider in the UAE and GCC
region.
In recent years, the Al Zahra Hospital's former owners, Gulf
Medical Projects Company, have invested significantly in the Al
Zahra Hospital, including the addition of a new 17 storey block and
three new operating theatres, which should help to drive revenue
growth over the medium and longer term as the additional capacity
drives increased patient numbers. Moreover, in the future NMC
believes that there is potential to further expand capacity at the
Al Zahra Hospital to approximately 200 beds with limited
incremental investment required.
As previously announced, NMC has identified approximately US$6.5
million of annual cost synergy benefits from the second year post
completion, around 65% of which should be realised in the first 12
months after completion, and believes that there are a number of
other operational and synergistic benefits that will accrue over
the medium term.
The proposed acquisition is expected to be earnings enhancing
for NMC shareholders in the first full year following
completion.
- ENDS -
Enquiries:
NMC Health plc
Prasanth Manghat, Deputy Chief Executive Officer
+971 (0)50 522 5648
Suresh Krishnamoorthy, Chief Financial Officer
+971 (0)50 591 5365
Roy Cherry, Head of Strategy & IR
+971 (0)50 667 0184
Media:
FTI Consulting, London
Matthew Cole
+44 (0)20 3727 1101
FTI Consulting, Gulf
Shane Dolan
+971 (0)4 437 2100
About NMC Health
NMC Health is the leading private sector healthcare operator in
the United Arab Emirates, with a nation-wide network of hospitals
and operations in the country since 1975. The company currently
operates or manages eight hospitals, two day-care patient centres,
nine medical centres and fifteen pharmacies. In addition, NMC owns
and operates Clinica Eugin in Barcelona, Spain - one of the leading
fertility treatment centres globally. NMC also owns 51 per cent.
shareholding in Fakih IVF Group, the Middle East market leader for
in-vitro fertilisation ("IVF") services. Moreover, NMC also owns
and operates Americare Group, the leading home care provider in the
UAE as well as ProVita, the pioneering provider of long-term
medical care, also in the UAE. The enlarged company received almost
3.2 million patients in 2015. NMC is also a leading UAE supplier of
products and consumables across several key market segments, with
the major contribution coming from healthcare related products. The
company reported revenues of US$880.9 million for the year ended 31
December 2015.
In April 2012 NMC was listed on the Premium Segment of the
London Stock Exchange. NMC is a constituent of the FTSE 250
Index.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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