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NMC Health to solicit two offers for a minority stake: Reuters
Posted on Thursday, 22 August 2019 08:43
London-listed and United Arab Emirates (UAE)-based NMC Health has received two bids to buy up to a 40.0 per cent stake that could be worth around USD 1.90 billion, four sources familiar with the matter told Reuters.
According to these insiders, one of the investment groups is backed by Fosun International in China and both are expected to make offers at a premium to the company’s current stock price.
Shares in NMC Health jumped 37.0 per cent to GBP 26.33 at 08:10 today, following the report of a potential sale, giving the business a market capitalisation of GBP 5.54 billion.
The stake that is possibly up for grabs is jointly owned by Khalifa Butti Bin Omeir, the chairman of Abu Dhabi-based KBBO Group, UAE businessman Saeed Bin Butti Al Qebaisi and Infinite Investment, an acquisition vehicle linked to both individuals.
Reuters cited people close to the situation as saying these backers may decide to retain part of the current interest, while the biggest individual shareholder – founder Bavaguthu Raghuram Shetty – has no plans to offload his 19.0 per cent holding.
The owners picked up the 40.0 per cent stake through investment vehicle Centurion Investment for AED 4.00 billion (USD 1.09 billion) in 2011.
NMC Health claims to be the largest healthcare company in UAE and ranks among the leading fertility providers in the world.
The group, which has a portfolio of hospitals, day surgeries, clinics and pharmacies, was the first business from the gulf to list on the London Stock Exchange, according to its website.
NMC Health generated revenue of USD 1.24 billion in the six months ended 30th June 2019, up 32.6 per cent to USD 932.00 million in the corresponding period of 2018.
Adjusted earnings before interest, taxes, depreciation and amortisation rose 22.5 per cent to USD 276.30 million in H1 2019 (H1 2018: USD 225.50 million).
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