NMC to acquire Al Zahra Hospital for Dh2.06b
dubai — NMC Health said on Wednesday that it would acquire Sharjah’s Al Zahra Hospital for Dh2.06 billion, marking a new milestone in its growth story.
The deal, one of the major buyouts in the UAE’s healthcare history, has been finalised and the takeover of Al Zahra Hospital from Gulf Medical Projects Company will be effective in the first quarter of 2017.
NMC hopes the strategic acquisition will better position it to bolster its operations in Sharjah where it made a foray in 2015 through the acquisition of Dr Sunny Healthcare Group, B.R. Shetty, chief executive officer of NMC, told Khaleej Times.
In 2015, NMC Health bought two new health groups, also including the Abu Dhabi-based home care service provider Americare Group, for a total of almost $100 million.
Shetty said NMC’s expansion into the Sharjah healthcare market represents another major advance towards its 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,” he said. “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, said based on projections for 2016, the combined entity would have posted a 21 per cent jump in net profit to $290 million this year, including NMC’s estimated $240 million net profit.
“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,” said Manghat.
The acquisition, subject to shareholder approval, 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. > TURN TO PAGE 25