Al Hammadi to acquire 40% stake in Wareed Medical for SAR 113M

Logo of Al Hammadi Holding Co.

Al Hammadi Holding Co. signed a share subscription agreement to acquire a 40% stake in Wareed Medical LLC for SAR 113 million. The two firms also inked a shareholder agreement to regulate relationships among shareholders and the mechanism of managing the company in the coming phase.

In a statement to Tadawul, the company pointed out the sellers—Omar Al-Wahibi, Rizqallah Al-Zahrani, Aqab Al-Mutairi, and Noura Al-Dosari—are the current shareholders of Wareed Medical.

The transaction will be financed through the company’s internal resources and operating cash flows, the statement noted.

The company stated that the agreement is subject to a number of terms and conditions prior to completing the transfer/allocation of the transaction shares, including, but not limited to, obtaining the necessary regulatory approvals from the relevant authorities in Saudi Arabia, including the approval of the General Authority for Competition, in addition to meeting other commercial and regulatory requirements.

Al Hammadi further clarified that the transaction terms include Al Hammadi’s subscription to a capital increase in Wareed Medical, whereby the full investment amount will be injected into the company to support its expansion plans, with no cash paid to current shareholders.

The investment will be paid in installments, with the first tranche amounting to SAR 20 million. The remaining amount will be settled over a period of up to five years under performance-linked payment terms agreed by the parties.

The deal aims to expand Al Hammadi’s integrated healthcare services ecosystem inside and outside hospitals, strengthen its presence in medical laboratory services and home healthcare, and leverage Wareed Medical’s branch network and operational expertise, contributing to income diversification and value creation for shareholders over the medium and long term.

Wareed Medical operates in medical laboratory services and home healthcare, providing an integrated package of laboratory tests and home medical services in accordance with approved quality standards, and owns an operational network of 60 branches across Saudi Arabia.

The financial impact of the transaction will be determined after completion, Al Hammadi concluded.

Transaction Assets Financial Data (2022-2024)  (SAR mln)

According to Argaam data, Al Hammadi Holding signed a non-binding memorandum of understanding last April to acquire a 40% stake in Wareed Medical.