Sulaiman Al Habib subsidiary inks MEP contract worth SAR 244.2 mln for maternity, pediatric hospital

Logo of Dr. Sulaiman Al Habib Medical Group

Dr. Sulaiman Al Habib Medical Group’s (HMG) board of directors gave the green light, on Oct. 23, for the subsidiary Gharb Al-Takhassusi Hospital, to award and sign a mechanical, electrical and plumbing (MEP) contract worth SAR 244.20 million for the maternity and pediatric hospital with Masah Construction Co., a related party. 

The nine-month contract comes within the normal course of business and does include any preferential benefits, according to a statement to Tadawul.

The deal includes related parties who have an indirect interest, namely Chairman Dr. Sulaiman Abdulaziz Al Habib and board member Hesham Sulaiman Al Habib.

The contract will be presented to the next general meeting for approval, the statement noted.

The project is likely to have a financial impact on the company's financials, starting from the commencement of operations, which is expected to be in 2024.

HMG's board of directors approved, on August 16, the construction of a new maternity and pediatric hospital in Riyadh as a branch of Gharb Al-Takhassusi Hospital, at an estimated cost of SAR 472 million, according to data available with Argaam.