UAE: NMC sells its final international business in Saudi Arabia

Healthcare group sells 53% stake in Saudi Medical Care Group for an undisclosed amount to an unknown buyer.



KT file
KT file
by

Waheed Abbas

Published: Mon 21 Mar 2022, 12:02 PM

Last updated: Mon 21 Mar 2022, 12:03 PM

NMC Healthcare on Monday said it has sold its 53 per cent stake in the Saudi Medical Care Group (SMCG) and the transaction is expected to complete in the second half of this year.

The company didn’t disclose the value of the Saudi deal and the name of the buyer. The sale of Saudi subsidiary will help the UAE-based healthcare operator to strengthen the liquidity. It is the final international business that has been sold by NMC Healthcare.

In 2019, NMC had formed a joint venture in Saudi Arabia contributing five of its private hospital assets and an additional cash injection to own a 53 per cent stake in SMCG. SMCG’s portfolio now includes seven hospitals and three clinics throughout the Kingdom.

NMC has divested all of its non-core international assets as part of the restructuring that the company embarked on a few years ago as it moves towards completion of the administration process.

The UAE’s largest healthcare operator ran into trouble in 2020 after more than $4 billion in hidden debt left many local and foreign banks with heavy losses and its UAE operating businesses were placed into administration in the courts of Abu Dhabi’s international financial centre Abu Dhabi Global Markets (ADGM).

In September, its creditors, who owed a total of $7.1 billion, approved a restructuring of the company which would give them the ownership of 34 NMC group companies and allow them to exit administration in Abu Dhabi.

“In 2020, we presented a turnaround plan for NMC that would see us divest our international operations and focus on our core business in the UAE and Oman. It was clear to us that this approach would be in the best interest of the company and would provide the best value for our stakeholders. The successful sale of NMC’s last substantial non-core international asset represents an important milestone as we take the final steps to exit the administration process as NMC emerges as a robust, focused, profitable, customer-centric business,” said Michael Davis, CEO of NMC Healthcare.

“This sale marks an important step for NMC. With the support of our creditors and partners, we have made excellent progress through the administration process. The sale announced today is one of the final pieces in this jigsaw, as we position NMC to deliver its long-term growth plan,” said Richard Fleming, managing director of Alvarez & Marsal Europe and joint administrator of NMC Healthcare.

ALSO READ:

In February 2022, Davis said the company is expected to come out of the administration around the middle of March this year.

waheedabbas@khaleejtimes.com


More news from Business