Middle East Healthcare Co. (MEAHCO), the owner and operator of the Saudi German Hospital (SGH), said its board of directors approved ten-year agreements signed with Bait Al Batterjee Medical Co. Ltd. to provide management supervision for six under-construction hospitals in the UAE (Sharjah and Ajman) and Pakistan.
These hospitals will operate under the brand of Saudi German Hospitals (SGH), the Tadawul-listed company said in a statement.
MEAHCO will not own any stakes in these hospitals. However, MEAHCO will obtain 10 percent of net profit before taxes for the two UAE-based hospitals, and the other three hospitals owned by Al Batterjee in Pakistan.
The Sharjah hospital will start operations in Q2 2018, and relevant financial impact will appear on earnings of 2020. Ajman hospital is expected to start operations in Q3 2019, with financial impact appearing on financial results in 2021.
MEAHCO’s board of directors has also authorized its chief executive officer to sign the administrative supervision agreements for the four hospitals in Pakistan.
Relevant financial impact on MEAHCO’s financial results will be revealed in due course.
Bait Al Batterjee Medical Co. Ltd. is a holding company, which through its subsidiary Middle East Healthcare Co., (MEAHCO) owns and operates hospitals in Saudi Arabia.
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