Abu Dhabi: The UAE based healthcare provider NMC Health announced the proposed acquisition of Al Zahra Hospital in Sharjah from Gulf Medical Projects Company for Dh2.05 billion ($560 million).
The healthcare provider said the acquisition will complement the group’s existing network of seven out-patient medical centers in Sharjah and will reinforce the company’s position as a leading provider of healthcare services in the UAE’s private sector.
Al Zahra Hosptial has achieved revenues of $130.4 million and net profit of $38.8 million for the year ended December 2015.
NMC Health said it has identified around Dh23.7 million of annual cost synergy benefits from the second year post completion of the purchase onwards, and expects other operational and synergistic benefits which will accrue over the medium term.
“We have taken the complete hospital. It will do very well for the company and for the shareholders,” said Dr B.R. Shetty, Chief Executive Officer of NMC speaking to Gulf News.
“We have already acquired Sunny clinic last year in Sharjah and patients can be referred from the clinic to the hospital (Al Zahra).”
“We remain committed to further develop the local healthcare market by offering best in class services and facilities to our patients.”
Al Zahra Hospital operates 137 active inpatient beds, serving approximately 400,000 outpatients and 23,000 inpatient bed days per year. The hospital has 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.
Prasanth Manghat, Deputy Chief Executive Officer of NMC in a statement said: “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.”
The acquisition is conditional on shareholder approval, to be obtained at a general meeting on December 29 and the acquisition is to be funded by a placing of up to 9.99 per cent of the issued share capital of the company and through new debt facilities, the group said.
NMC has acquired Dr Sunny Healthcare group, in Sharjah last year for $64 million.
Dr Sunny Healthcare group has a chain of six medical centers and three pharmacies.
The group listed on London Stock Exchange reported revenues of $880.9 million last year. It currently operates eight hospitals, two-day care patient centers, nine medical centers and fifteen pharmacies.
Citing research reports, NMC said the UAE continues to be an attractive market in healthcare 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.
