Dubai - MENA Herald: NMC Health plc. (NMC), the leading integrated healthcare provider operating across the United Arab Emirates, is pleased to announce the proposed acquisition of Al Zahra Hospital in Sharjah from Gulf Medical Projects Company (“GMPC”) for AED 2,058 million (approximately US$560 million).
Subject to shareholder approval, the acquisition is a strategic step forward for NMC Health and will reinforce the company’s position as a leading provider of healthcare services in the UAE private sector. Al Zahra Hospital will complement the Group’s existing network of seven out-patient medical centres in Sharjah.
The Al Zahra Hospital is one of the largest private hospitals in the UAE, operating 137 active inpatient beds, serving approximately 400,000 outpatients and 23,000 inpatient bed days per year. It provides services of an international standard, supported by state-of-the-art facilities including cutting edge radiology and laboratory practices, as well as seven operating theatres, recovery room beds, more than 80 individual clinics, a maternity complex and emergency room beds, including triage.
The Al Zahra Hospital has demonstrated a strong track record of growth and for the year ended December 2015 achieved revenues of US$130.4 million, and net profit of US$38.8 million respectively. NMC has identified approximately AED23.7 million (US$6.5 million) of annual cost synergy benefits expected to be derived from the acquisition from the second year post completion onwards.
Dr. B.R. Shetty, Chief Executive Officer of NMC, commented:
“Our expansion into the Sharjah healthcare market represents another major advance towards our objective of developing a leading integrated private healthcare operator in the UAE. We remain committed to further develop the local healthcare market by offering best in class services and facilities to our patients.
“The acquisition of Al Zahra Hospital is fully in line with our strategy and demonstrates our focus on delivering long-term growth of our strategic and competitive capabilities to expand sustainable shareholder returns.”
Prasanth Manghat, Deputy Chief Executive Officer of NMC, commented:
“The acquisition of Al Zahra Hospital, one of the leading and most reputable hospitals in the UAE, carries tremendous strategic significance for NMC and expands the Group’s reach within the region.”
In view of its size, the acquisition requires the approval of the Company’s Shareholders at a General Meeting which is taking place in London on December 29th. As part of the financing of the Acquisition, the Company is undertaking a Placing of up to 9.99 per cent of the issued share capital of the company, as separately announced, and has also put in place new debt facilities.
According to sector research reports, the UAE continues to be an attractive market with only 1.3 hospital beds per one thousand capita compared to the world average of 2.9 and the European average of 6.4, despite the UAE demonstrating historically high population growth of 4.2 per cent from 2008 to 2015 vs the world average of 1.2 per cent and a flat European population.
