Dallah signs deal with Maharah subsidiary to buy stake in Care Shield for SAR 434.3M

Dallah Healthcare Co. signed an agreement on Dec 18 to acquire all shares held by Growth Avenues Investment Co., a subsidiary of Maharah Human Resources Co., in Care Shield Holding Co. (Kingdom Hospital and Consulting Clinics) for SAR 434.3 million.

The deal covers 5.17 million shares, representing 41.36% of Care Shield’s share capital.

Dallah currently owns 58.64% of Care Shield Holding (which is not a party to the agreement). After the deal, Dallah will own 100% of Care Shield’s share capital, according to two separate statements filed to Tadawul.

Dallah and Maharah said they agreed to the customary representations, warranties, and provisions, as well as the terms covering the transfer of ownership of Growth Avenue's shares in Care Shield to Dallah in the shareholders’ register. They also agreed to the issuance by Dallah of a cheque for the cash consideration in favor of Growth Avenue.

Dallah said the transaction was financed through the company’s internal resources and credit facilities, noting that the acquisition is a strategic step to expand its specialized healthcare services and reach a broader patient base, supporting its future growth objectives and maximizing shareholders' equity.

The company added that the deal will strengthen its presence in the capital, Riyadh, through advanced healthcare facilities, and extend its trusted healthcare services to a wider segment of patients across a broader range of medical specialties and expertise. The acquisition will also increase the share of Dallah shareholders from Care Shield’s earnings, following the purchase of the remaining stake.

Maharah said the transaction was executed under a share sale and purchase agreement that included customary representations, warranties, and provisions, including payment of the cash consideration to Growth Avenue.

The company said its investment in Care Shield was valued at about SAR 333 million in its consolidated statement of financial position as of Sept. 30, 2025. The value will be updated to include Maharah’s share of Care Shield’s results from Oct. 1, 2025, until the transaction date, in line with accounting standards.

Maharah said the deal forms part of its strategy to manage its investment portfolio, generate returns, and enhance capital allocation efficiency. Proceeds from the sale will be used to strengthen the company’s financial position in line with its strategic priorities and to benefit shareholders.

Care Shield generated revenue of SAR 428.9 million in 2024, Dallah and Maharah said.

Dallah and Growth Revenue obtained a certificate of no-notification requirement from the General Authority for Competition, adding that there are no related parties to the deal.

According to data available on Argaam, Maharah and Dallah announced in October the signing of a non-binding memorandum of understanding (MoU) to study the transaction. Earlier in December, the MoU was extended until Dec. 21, 2025.