Strategic investment to inject USD $40m
- NMC receives all regulatory approvals for long-term care facility in Jeddah
- Agrees to terms to acquire two new profitable hospitals
- Plans for a new 170-bed greenfield facility
Abu Dhabi, United Arab Emirates: AETOS Wire: NMC Health, the leading integrated healthcare provider, operating across the United Arab Emirates, announced that it has received all regulatory approvals for its long-term care facility, Chronic Care Specialty Medical Center (CCSMC), in Jeddah, KSA. CCSMC is believed to be one of the first greenfield medical facilities in Saudi Arabia to be established by a non-KSA company.
Prasanth Manghat, CEO of NMC Health stated, “NMC would like to thank the Saudi government for the support it has offered us during the regulatory approval process. With a total licensed capacity now at about 700 beds, we see the KSA as an important part of NMC’s growth strategy and will continue to identify areas in which we can fill gaps in the country’s healthcare offerings.”
“The 220-bed long-term care facility initiated operations with 50 beds, which will be fully committed to patients currently receiving short-term acute care from hospitals in Jeddah and its surrounding areas. The migration of patients will begin today. A phased increase of utilisation is planned with hospital projected to be at full capacity by H1 2019.” he added.
Explaining the latest plans for NMC Health in Saudi, Mr. Manghat elaborated, “We agreed to acquire 60 per cent stake in a new hospital in Najran. The acquisition is expected to close later this year for the hospital which houses 100 beds with adjacent land for future growth.”
“We also agreed to fully acquire a hospital in the northwestern KSA city of Ha’il that has a capacity of 60 beds. Plans are already under way to utilise existing land to increase capacity to more than100 beds. The hospital currently provides multi-specialty services to Ha’il and the surrounding area”
NMC Health is planning a shell and core, greenfield project planned in the Western Province of KSA with an expected capacity of 170 acute care beds. The facility is expected to be operational in H1 2019. NMC healthcare reached agreements to acquire these multi-specialty hospitals in each of the northwestern and southern regions of Saudi Arabia for an aggregate consideration of USD $40m”
Mr. Manghat concluded, “With the Chronic Care Specialty Medical Center, the acquisition of two existing facilities, and the planned greenfield project, NMC has aligned its strategic goals with the needs of the people of KSA. The expansion plans to provide our leading integrated services to Saudi Arabia are expected to positively impact NMC’s earnings from 2018 and beyond.”
NMC healthcare became the first Middle East company to join the FTSE 100.
About NMC Health:
The NMC group (the “Group”) is the leading private sector healthcare operator in the United Arab Emirates, with a nation-wide network of hospitals and operations in the country since 1975. The Group currently operates or manages eight hospitals, two day-care patient centres, nine medical centres and fifteen pharmacies. In addition, the Group owns and operates Clinica Eugin in Barcelona, Spain – one of the leading fertility treatment centres globally. NMC also owns a 51 per cent. shareholding in Fakih IVF Group, the Middle East market leader for in-vitro fertilisation (“IVF”) services. Moreover, NMC also owns and operates Americare Group, the leading home care provider in the UAE as well as ProVita, the pioneering provider of long-term medical care, also in the UAE. The enlarged company received almost 4.3 million patients in 2016. The Group is also a leading UAE supplier of products and consumables across several key market segments, with the major contribution coming from healthcare related products. The Group reported revenues of US$1,220.8 million for the year ended 31 December 2016.
In April 2012 NMC was listed on the Premium Segment of the London Stock Exchange. NMC is a constituent of the FTSE 250 Index.