- The proposed JV is expected to employ up to 10,000 employees over next 5 years
- Deal signed on the sidelines of the Future Investment Initiative (FII) 2018 in Riyadh
RIYADH, October 24, 2018 – NMC Health (NMC), a London-listed international private healthcare operator with operations across 17 countries, and Hassana Investment Company (Hassana), the investment arm of the General Organization for Social Insurance (GoSI) of Saudi Arabia, have signed an MoU that aims to form a joint venture (JV) to acquire and develop a pan Saudi Arabia network of world-class healthcare facilities with a capacity of up to 3,000 beds. This MoU targets a total investments value of up to SAR 6 billion over the next 5 years and to employ up to 10,000 employees, including full-and part-time positions. At inception, the proposed JV will become one of the largest private healthcare operators in Saudi Arabia with a combined capacity of 1,489 beds (664 beds contributed by five NMC facilities and 825 beds by two National Medical Care facilities).
NMC and Hassana signed the MoU on the sidelines of the Future Investment Initiative (FII) 2018, the second edition of a major conference-taking place in the Saudi capital Riyadh from October 23rd – 25th, organized by the Public Investment Fund (PIF) of Saudi Arabia and attended by global investors, CEOs and business and governmental leaders.
Prasanth Manghat, Chief Executive Officer of NMC, said: “We identified the Kingdom of Saudi Arabia as a key strategic priority for NMC and the proposed partnership between NMC and GoSI/Hassana would offer a tremendous opportunity for both companies to better serve the KSA healthcare market. The Saudi government’s forward-looking and investor-friendly policies make the Kingdom one of the most attractive destinations in the region for investment in the healthcare sector. NMC is keen to bring its international expertise, world class collaborations, specialized services (Maternity, Oncology, Pediatrics, Diabetes centers etc.) and key verticals (Fertility, Long-term Care, Cosmetics etc.) to serve population of the Kingdom.”
Saad Bin Abdulmohsin Alfadly, Hassana’s CEO, said in a statement, “The proposed partnership between Hassana and NMC is driven by our view that healthcare in Saudi Arabia is one of the most attractive markets for strong long-term growth. The proposed JV has ambitious growth plans across different healthcare sub-sectors, with both partners committed to compounding returns over the long term, whilst providing best-of-class services to patients. Benefiting from Hassana’s role as a strong long-term financial and strategic investor and NMC’s expertise as a sophisticated and successful healthcare expert internationally.
“Moreover, Hassana’s strong commitment to the sector, particularly in the form of strategic investments, remains a vital means of attracting and developing healthcare expertise in the country. NMC has been the most progressive foreign entrant into the Saudi healthcare market and would accelerate the process of bringing best international practices to KSA.”
The proposed JV platform would be well-positioned to become one of the most dominant healthcare players in Saudi Arabia and is ideally positioned to capitalize on the health care privatization program in Saudi Arabia in line with the Saudi Vision 2030 initiatives. The JV drives future expansion for NMC in Saudi Arabia where it will seek to take majority stakes in Saudi-based healthcare operators. It will also acquire operation and management contracts to oversee private and government hospitals in the Kingdom, NMC will hold a voting majority in the proposed JV, with the exact stake subject to final terms. NMC will also retain operational and management control of the assets.
The formation of the proposed JV is subject to regulatory approvals and signing of definitive agreements after completion of necessary due diligence by both NMC and Hassana.
As demonstrated with a number of investment announcements during FII, the Kingdom’s investment attraction and promotion strategy is accelerating under the INVEST SAUDI initiative, in line with the objectives of Vision 2030. It seeks to support and build awareness of the significant opportunities that Saudi Arabia offers to international, regional and local investors, led by the Saudi Arabian General Investment Authority (SAGIA) in collaboration with partners across government.