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Saudi Arabia's Dallah Healthcare, which had earlier this year signed MoUs to acquire stakes in two healthcare firms, has entered into a binding share purchase and subscription agreement with Ayyan Investment Co. to acquire its shares for approximately 660 million riyals ($176 million).
Dallah will acquire Ayyan’s shares in Al Ahsa Medical Services Co. and Al Salam Medical Services Co. by means of a capital increase by issuing new shares in Dallah to Ayyan Investment.
Dallah, which is looking to expand its reach across the kingdom and develop the quality of its medical services, will acquire 97.41% shareholding in Al-Ahsa and 100% in Al-Salam Medical Services, a statement on Tadawul said.
The net market value of equity of Al-Ahsa was agreed at SAR 420 million. Accordingly, the valuation of the shares to be acquired by Dallah is approximately SAR 409 million.
In the case of Al Salam, which Dallah will fully acquire, the net market value of equity was agreed at approximately SAR 250.88 million
For the purpose of the transaction Dallah was valued at SAR 16.56 billion, equivalent to SAR 169.51 per share, based on the average share price for trading days between February and August.
Dallah will increase capital by 3.99%, or SAR 38.93 million. Once the transaction is completed, the ownership percentage of Dallah’s existing shareholders will decrease to 96.17%.
(Writing by Brinda Darasha; editing by Daniel Luiz)
