NMC Health Plc Update on KSA Joint Venture (8151R)
05 March 2019 - 6:01PM
UK Regulatory
TIDMNMC
RNS Number : 8151R
NMC Health Plc
05 March 2019
5 March 2019
Update on KSA Joint Venture: Definitive agreements signed for
formation of the JV
NMC Health plc (LSE: NMC), the leading private healthcare
operator in the Gulf Cooperation Council (GCC) with international
services across 18 countries, announces the signing of definitive
documents to form a joint venture in healthcare ("JV") with Hassana
Investment Company ("Hassana"), the investment arm of the General
Organization for Social Insurance ("GOSI") in Saudi Arabia. The
General Organization for Social Insurance is one of the largest
pension funds in the world by assets under management. It is a
government administered pension fund covering private sector
employees in Saudi Arabia.
All commercial terms and agreements have been finalised between
NMC and Hassana, with both parties working towards customary
closing requirements. The JV is formed by NMC's contribution of its
five assets in KSA and an additional cash injection at closing, and
GOSI's contribution of 38.88% stake in Tadawul-listed National
Medical Care Company ("Care") at a price of SAR 54 per share. At
the closing of the transaction, NMC will own a 52% stake (through
the combination of asset contribution and cash injection) and GOSI
will own a 48% stake (through a wholly-owned subsidiary vehicle) in
the JV. NMC will have operational control of the JV.
NMC and GOSI have agreed to a well-defined long-term sustainable
growth plan for the JV. Moreover, in addition to building solid
operational teams at its facilities in KSA, NMC has also
meticulously set up an independent corporate team in the Kingdom.
It has appointed highly capable and experienced Country CEO, CFO
and respective Heads of Strategy, Business Development and Human
Resources and believes that the corporate team in KSA is well
positioned to integrate and drive the strong growth envisioned for
the JV.
Prasanth Manghat, Chief Executive Officer of NMC Health,
commented;
"We are pleased to reach this important milestone in the
creation of our JV with GOSI, which sets a clear line of sight to
the near-term completion of the transaction. This partnership will
allow NMC to significantly increase its pace of expansion in the
Kingdom, while simultaneously bringing best practices to the
country. The attractive, but underserved Saudi healthcare market
offers significant growth opportunities and the JV is uniquely
placed to benefit from them."
Saad bin Abdulmohsen Al-Fadly, Chief Executive Officer of
Hassana, commented;
"The signing of definitive agreements represents a major step
towards the formalization of our partnership with NMC. The
combination of Hassana/GOSI as one of the pre-eminent financial
institutions in the region and NMC Health, the largest and one of
the most successful healthcare operators in the GCC, represents a
leap forward in our commitment to invest in the healthcare sector
in Saudi Arabia. The new JV is well positioned to capitalize on the
market opportunities in Saudi and we look forward to transforming
the JV into one of the leading healthcare players in the
Kingdom."
Contacts
NMC
Prasanth Manghat, Chief Executive
Officer
Prashanth Shenoy, Chief Financial +971 (0)50 522 5648
Officer +971 (0)56 329 0545
Asjad Yahya, Investor Relations +971 (0)56 219 0975
Media
FTI Consulting, London
Brett Pollard / Victoria Foster Mitchell +44 (0)20 3727 1000
FTI Consulting, Gulf
Shane Dolan +971 (0)4 437 2100
About NMC Health
NMC the leading private healthcare operator in the GCC with an
international network of hospitals across 18 countries. NMC also
ranks as one of the top three in-vitro fertilisation ("IVF")
operators globally. The Group is also a leading provider of
long-term medical care in the UAE through its subsidiary ProVita.
Pursing an aggressive international expansion program from 2016,
NMC has identified the Kingdom of Saudi Arabia (KSA) in particular
as a key growth market, where the company has introduced long-term
and multi-specialty care services. NMC received over 5.7m patients
in 2017. The Group 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 Group
reported revenues of US$1.6 billion for the year ended 31 December
2017.
In April 2012 NMC was listed on the Premium Segment of the
London Stock Exchange. NMC is a constituent of the FTSE 100
Index.
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END
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