Saudi German Hospital building
Middle East Healthcare Co. (Saudi German Hospital) signed today, Jan. 28, a non-binding memorandum of understanding (MoU) with Sobhi Abdul Jalil Batterjee Medical Hospital in Jeddah to enter as an investor partner in the hospital in exchange for cash, according to a bourse filing.
The two parties also agreed that the evaluation of the final value of the transaction will be determined based on the results of due diligence reviews, the company added.
The MoU will be effective from the signing date until June 30, 2021.
According to the company's filing, related parties include Sobhi Abduljaleel Batterjee (board chairman), Makarem Sobhi Batterjee (vice chairman), Khalid Abduljaleel Batterjee (board member), and Sultan Sobhi Batterjee (board member).
The company expects the deal to boost its market value, and to have a positive impact on its financial statements in the coming years, in addition to supporting the company's revenues and helping the company expand in different regions within the Kingdom.
According to the statement, the Sobhi Abdul Jalil Batterjee Medical Hospital is still under construction and it is expected to open in the second half of 2022.
The hospital building consists of 80 outpatient clinics, with all medical specialties, in addition to the patient admission department, radiology department, laboratories and all other support departments.
The hospital has a capacity of 300 beds.
The company also noted that the purpose of the transaction fulfils its strategy concerning its expansion plan and supporting its market standing in providing premium medical services.
The firm will announce relevant developments in due course.
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