Sanabil Investments, a closed joint stock company wholly owned by the Public Investment Fund and headquartered in Riyadh, has announced the completion of its acquisition of a 20% equity stake in Ebrahim Mohammed Almana & Brothers Co. (the "Company"). This is the third direct investment by Sanabil Investments in the last twelve months.
The Company owns and operates the Almana General Hospitals (AGH) in the Eastern Province. The acquisition is part of Sanabil Investments' strategy to invest in the Saudi economy and contribute to the Kingdom's National Transformation Program.
Based in Al-Khobar, the Company has been active in the healthcare industry since 1949 and established the first private sector general hospital in the Eastern Province. Today, with more than 900 beds and more than 300 outpatient clinics across four hospitals in Al Khobar, Dammam, Hofuf, and Jubail, and two medical centers in Dammam and Jubail, the Company is considered one of the largest and oldest healthcare providers in the Kingdom of Saudi Arabia.
Mr. Ibrahim Al-Romaih, Sanabil Investments CEO, said on this occasion, "We are delighted to partner with one of the most renowned and reputable healthcare providers in the Kingdom of Saudi Arabia. The acquisition is in line with Sanabil's expected role to assist leading family businesses in Saudi Arabia in adopting a higher degree of corporate governance and institutional framework to ensure their long term sustainability and continuity for the benefit of their shareholders and the overall Saudi economy."
Mr. Ebrahim Almana, the Company's Chairman, commented on the partnership with Sanabil Investments by saying "The shareholders are very pleased with this important strategic milestone by the Company which reflects our prominent position in the market today and our attractive prospects in the future. This transaction affirms our role as a key healthcare provider to citizens and corporates in Saudi Arabia. All shareholders and members of the Company are equally proud of the efforts that Sanabil Investments has put in to make this deal happen." He concluded by saying "We thank Sanabil Investments for its confidence in the success we have built to date, and we look forward to achieving more successes together in the future."
Commenting on the acquisition, Mr. Faisal Almana, the Financial and Administrative Manager and representative of shareholders in the acquisition, said "I am very pleased with this important milestone in the history of the Company, which was the result of our tireless efforts and the dedication shown by a highly professional team from Sanabil Investments, and I look forward to working with them for the benefit of our shareholders."
For his part, Mr. Khalid Al Ghamdi, the Acting CEO of GIB Capital, the financial advisor to the Company for the transaction, expressed his delight in assisting the selling shareholders with completing this strategic acquisition within a promising M&A market in Saudi Arabia. Mr. Al Ghamdi said "The Kingdom of Saudi Arabia's rapidly expanding healthcare sector offers investors many attractive opportunities. Not only is Saudi Arabia the Middle East's largest healthcare market, it also has the fundamentals for sustainable growth. The Government has allocated SAR 105 billion to the healthcare sector in 2016 from the annual budget or 12.5% of the total, illustrating the government's sustained commitment towards maintaining a high level of spending on healthcare". Mr. Al Ghamdi concluded by saying "I wish all shareholders continued success and prosperity in the future."
GIB Capital acted as financial advisor and Clifford Chance acted as legal advisor to the Company. The law office of Looaye Al-Akkas in association with Vinson & Elkins acted as legal advisor to Sanabil Investments.
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© Press Release 2016
