Dallah Healthcare still in talks to acquire Erfan and Bagedo Hospital

Saudi Arabia-based Dallah Healthcare Holding Co. said negotiations are still underway to acquire Dr. Erfan and Bagedo Hospital in Jeddah in line with the memo of understanding signed between Dallah and the owners of the hospital, the company said in a statement.

The company, which operates, manages, and maintains health complexes, will increase its capital by issuing 25 percent free shares, or a free share for every four shares after the acquisition is complete. Its capital will then increase to SAR 683.4 million from SAR 546.7 million, it added.

If negotiations nosedive, the capital will be increased to SAR 590 million from SAR 472 million instead.

Last November, Dallah’s board, recommended increasing its capital through issuing 7.47 million new shares with a nominal value of SAR 74.7 million to the sellers in order to pay for the acquisition in shares and cash.