Logo of Middle East Healthcare Co.’s (Saudi German Health)
Middle East Healthcare Co.’s (Saudi German Health) board of directors recommended today, July 6, awarding a contract worth SAR 223.3 million to International Hospital Construction Co. (IHCC), which is a related party.
Under the contract, IHCC will construct an outpatient tower that includes 14 clinics and expand the bed capacity of inpatient clinics by adding 207 beds in Saudi German Hospital Jeddah, according to a bourse statement.
Relevant parties to the contract are Sobhi Batterjee, Khalid Batterjee and Sultan Batterjee, who are shareholders of IHCC.
The recommendation is subject to the approval of the next general meeting.
The company expects to complete the project within 36 months from the date of award.
The project is expected to be financed through bank loans and the company’s cash resources.
The recommendation was made on an arm’s length basis following the process of bidding and evaluation. Discussions and decision-making took place after excluding relevant parties from the agenda and voting.
The project will have a material positive impact on the firm’s revenues, which will be announced in due course.
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