NMC Healthcare (NMC), the General Organization for Social Insurance (Gosi) and its investment arm Hassana Investment Company have announced the closing of their definitive agreements signed on March 4 to form a joint venture in the healthcare sector of  Saudi Arabia.

 

The joint venture is formed by NMC’s contribution of its five assets in Saudi Arabia and SR250 million ($66 million) of additional cash injection by NMC at closing, and Gosi and Hassana’s contribution of their 38.88% stake in Tadawul-listed National Medical Care Company (Care) at a price of SR54 per share. 

 

Following the closing of the transaction, NMC owns 53% stake (through the combination of asset contribution and cash injection) and Gosi 47% stake (through a wholly-owned subsidiary) in the joint venture company – NMC Healthcare Saudi Arabia Company. NMC will have operational control of the joint venture.

 

The parties also announced that the joint venture has acquired additional 4,629,808 shares of Care representing 10.3% of Care's share capital through privately negotiated deals with the counterparties. As a result, the aggregate shareholding of NMC KSA in Care amounts to 22,066,901 shares, representing 49.2% of Care's share capital. 

 

The purchase was funded through the additional cash injection of SR250 million ($66 million) that was made by NMC into NMC KSA. 

 

The purchase method and the price per share are as follows: 17,437,093 shares of Care (representing 38.88% of its share capital) were purchased by NMC KSA from Gosi and Hassana through a private transaction at a price of SR54 per share for non-cash consideration, namely a 47% stake in NMC KSA (held through a wholly-owned subsidiary of Gosi).

 

Additionally, 4,629,808 shares of Care (representing 10.3% of Care's share capital) were purchased by NMC KSA from several investors through negotiated deals at a weighted average cash price of SR52.6 per share. - TradeArabia News Service