Tibbiyah inks deal to sell interest in Innovative Healthcare for SAR 52M

Tibbiyah said the transaction is not expected to result in a material impact on the income statement for 2025

Arabian International Healthcare Holding Co. (Tibbiyah) signed, on Dec. 31, 2025, a conditional share purchase agreement to sell its 51% equity interest in Innovative Healthcare Holdings Ltd. for SAR 52 million, implying an equity value of SAR 101.96 million for 100% of the company.

In a statement to Tadawul, the company said the buyer is LE MONDE HOLDING LTD, incorporated under the laws of Abu Dhabi Global Market. The transaction asset is clinics and day surgery center specialized in obesity and aesthetic.

The book value of the asset is estimated at SAR 50 million, subject to final year-end closing adjustments.

Tibbiyah stated that it resolved to divest its investment after assessing material changes in the obesity treatment market, driven by the rapid adoption of GLP-1 anti-obesity medications, which led to a structural decline in demand for surgical obesity procedures.

This development adversely impacted the addressable market, scalability, and expected profitability of the investment. Accordingly, the board determined that the investment no longer aligned with the company’s strategic objectives, and approved the divestment in order to optimize capital allocation and redeploy proceeds into strategically aligned opportunities.

The agreement is subject to several conditions’ precedent prior to the completion of the shares transfer, which is the subject matter of the transaction, including —without limitation— obtaining all required regulatory approvals within the United Araba Emirates, the statement added.

The transaction will result in the dissolution of the partnership between Tibbiyah and Dr. Aayed Al-Qahtani in the obesity and aesthetic sector.

Following the execution of the binding agreement on Dec. 31, 2025, Innovative HealthCare will be deconsolidated from Tibbiyah’s financial statements effective the same date.

The disposal consideration exceeds the net book value of the investment by a non-material margin; accordingly, the transaction is not expected to result in a material impact on the income statement for 2025, the Saudi-listed firm noted.

The proceeds from the transaction will be utilized in accordance with the agreed payment terms to strengthen the company’s financial fundamentals, settle obligations and support strategic initiatives, with any related disclosures to be made in accordance with applicable regulatory requirements.