Dubai: Amanat Holdings, which has interests in healthcare and education, is to acquire a stake in the Middle East operations of VPS Healthcare.
A “special steering committee” has been set up to consider the deal and finalize the terms of the agreement. In a filing with Dubai Financial Market, Amanat said the committee will appoint external advisers and an independent “valuer”.
Established in 2007 and founded by Dr. Shamsheer Vayalil, VPS operates in the UAE and with a growing foothold in Oman.
Incidentally, Vayalil holds the position of Vice-Chairman and Managing Director at Amanat Holdings, and as such he will not be participating in any discussions related to this transaction, addressing concerns of conflict of interest.
Amanat had appointed JP Morgan as its financial advisor on the agreement. It had said last week that the transaction is still at an early stage, and did not disclose the size or the value of the stake.
The committee is authorized to communicate and liaise with Securities and Commodities Authority (SCA) and other regulators and governmental bodies to obtain all necessary approvals required. Amanat said it can also enter a preliminary agreement with VPS.
A deal in principle was agreed after considering the “legal structuring options” and the “financial considerations” for the deal. It also approved the initial offer, which is subject to customary legal, financial and commercial due diligence and approval from shareholders and regulators.