Saudi Medicare to raise stake in Oman Medical Projects to 91%

Muscat - 

Riyadh-based hospital management company Saudi Medicare Company is to buy a 39.63 per cent stake in Oman Medical Projects Company, which owns Muscat Private Hospital, from Oman and Emirates Investment Holding Company (OEIHC).

Saudi Medicare, which is already a majority stakeholder in Oman Medical Projects with 51.73 per cent shareholding, will hold 91.36 per cent of the company’s shares after the acquisition.

In a disclosure to the Muscat Securities Market (MSM) on Tuesday, OEIHC said that it is in the process of signing a sale agreement with Saudi Medicare to finalise the deal for RO4.12mn.

OEIHC offered its entire 39.63 per cent stake, or around 33mn shares, in Oman Medical Projects at 125bz per share.

Speaking to Muscat Daily, Awad Mohammed Bamkhalef, chief executive officer of OEIHC, said that the sale is part of OEIHC's business plan to restructure investments and reduce loan liabilities.

He said, “The company will make a profit of RO3.04mn from this deal. Our strategy is to look for stable income from long-term projects and reduce exposure in trading portfolios or listed companies. We are evaluating one or two more disinvestments as well as new acquisitions this year.”

The total assets of Oman Medical Projects were RO19.4mn as of March 31, 2012.

OEIHC incurred a net loss of RO2.9mn in 2011 as against a net profit of RO246,248 in 2010. Most of OEIHC's subsidiaries and associate companies posted net losses in 2011. 

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