Wednesday 20 October 2021

Amanat unit divests minority stake in IMC for $118m

DUBAI, 24 days ago

Amanat Holdings, a leading healthcare and education investment company said that Saudi Healthcare and Education Fund, in which Amanat through its subsidiaries indirectly holds 100% of its units, has completed the sale of its minority equity interest representing 13.13% of the shares in International Medical Center KSA (IMC) to a private investor for a total consideration of SR443 million ($118 million).

The said divestment has resulted in a total cash return of about AED100 million ($27.2 million), including dividends, and is expected to report a gain from sale of about AED40 million.  

The Fund first acquired its equity interest in IMC, a 300-bed multi-disciplinary tertiary care hospital that serves Saudi Arabia’s Western Region and targets the high-end segment of the market, in January 2017, and exited IMC at a multiple of c. 15x EV/EBITDA LTM June 2021.

The exit is in line with Amanat’s communicated strategy to exit minority investments where the path to control is challenging or limited and focus on being influential shareholders. The exit enables Amanat to pave the way forward towards more specialized opportunities in healthcare and education and to expand their platforms by building scale and synergies for future monetization.

Amanat’s Chairman, Hamad Alshamsi said: “IMC has a unique market position in Saudi Arabia and is a reputable provider of quality healthcare. We invested through the Fund in IMC nearly five years ago, with a different vision to obtain exposure across recognized assets through minority stakes.

“Today, Amanat has begun forming specialized platforms that have the potential to also be leading providers with Amanat as an influential or majority shareholder. The divestment of IMC was timely and at an attractive multiple as we continue to deliver on our strategic priorities and exit minority positions that can enable us to recycle capital for investments that are better aligned with Amanat’s platform model.”

Alshamsi added: “As we continue to surmount the repercussions of the Covid-19 pandemic we are also cognizant of the value our team delivers to our shareholders and I would like to commend the Amanat Management team for a series of solid deliverables since the beginning of 2021. We look forward to continuing on this trajectory which has resulted in the expansion of Amanat’s profitability enabling us to deliver shareholder value at every milestone.”

Dr Mohamad Hamade, CEO of Amanat, commented: “It has been a pleasure working alongside the esteemed founders, board of directors, management and medical staff of the renowned IMC over the years. Since the Fund’s investment in IMC, we have made headway despite our limiting ownership.”

“We stepped up to support IMC’s management at the height of the Covid-19 pandemic to ensure business continuity and a healthy balance sheet and led on the bolt-on acquisition of First Clinic in North Jeddah that paved the way for IMC to become a hub-and-spoke model adding significant capacity in the group’s core market. That said, I would like to take this opportunity to thank the IMC stakeholders for their continuous support and for their ongoing contribution to society.

The exit from IMC was an independent sale process during a challenging economic climate and I believe we managed to seize a solid opportunity as we continuously work to deliver on our promise to grow total shareholder returns. Looking ahead, as disciplined investors with a healthy pipeline across both healthcare and education, we look to invest in high yielding opportunities and focus on businesses that are leading the transformation of the healthcare and education sectors to build long-term sustainable value while delivering solid returns to shareholders.” Hamade added.

The divestment of IMC, which was sourced and executed internally, demonstrates Amanat’s capabilities across the investment cycle, from disciplined acquisition to portfolio management and value creation, and ultimately divestment.

Given Amanat’s strong balance sheet and the proceeds generated from the exit of both IMC and Taaleem this year, the company has north of AED700 million of dry powder to facilitate funding for the right future investments. – TradeArabia News Service


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