Dallah Healthcare Co. signed on Monday an agreement to buy a 10% stake in Meras Arabia Medical Holding Co. (Meras) which is specialized in dental and aesthetic medicine, the company said in a bourse statement.
The deal was concluded for a value of SAR 12.2 million that will be paid from the company’s internal resources.
Before this deal, the Saudi-listed healthcare provider owned an indirect stake of 18.9% in Meras through its investment in MIFIC Private Equity opportunities fund 3.
This step is a part of Dallah’s plan to gradually acquire up to 70% of Meras through:
- Irrevocable option to buy the rest of the MEFIC fund that owns 44.3% stake in MERAS after its maturity.
- A two-year call option to acquire additional 16% stake in Meras from its owners directly.
The founders of Meras have exclusively granted Dallah an irrevocable option, the right that allows Dallah to subscribe for an additional 16% of the total shares held in pro-rata by the founders after two years from the date of signing the SPA (Call Option). Exit of the founders is not allowed before three years from the date of signing the SPA, the statement added.
The sellers are Abdulaziz Albakr and Abdulrahmen bin AlJalil.
Meras Arabia Medical Holding is a group of 13 medical centers across Riyadh. The centers are offering cosmetic dermatology and dental care services and other general healthcare services.
Meras has recorded around 17.5% growth in revenues from SAR 57 million in 2017 to SAR 67 million in 2018. Net profit also jumped nearly 22% YoY for the same period to SAR 14 million.
The transaction is aimed at supporting Dallah’s expansion in the sector and diversity in revenue sources.
No related parties are involved in the deal, the statement concluded.
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