UAE-based healthcare operator NMC Health, has announced the signing of definitive documents to form a joint venture in Saudi Arabia to "significantly" increase its pace of expansion in the kingdom.
The joint venture has been with Hassana Investment Company, the investment arm of the General Organisation for Social Insurance in Saudi Arabia, one of the largest pension funds in the world by assets under management.
All commercial terms and agreements have been finalised between NMC and Hassana, with both parties working towards customary closing requirements, a statement said.
The JV is formed by NMC's contribution of its five assets in Saudi Arabia and an additional cash injection at closing, and GOSI's contribution of 38.88 percent stake in Tadawul-listed National Medical Care Company at a price of SR54 per share.
At the closing of the transaction, NMC will own a 52 percent stake and GOSI will own a 48 percent while NMC will have operational control, the statement added.
NMC and GOSI said they have agreed to a "well-defined long-term sustainable growth plan" for the JV while NMC has also set up an independent corporate team in the kingdom.
Prasanth Manghat, CEO of NMC Health, said: "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, CEO of Hassana, added: "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."
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