UAE-based Amanat Holdings acquires majority stake in Sukoon via merger with CMRC

Amanat Holdings, the UAE-based healthcare and education listed investment company, has acquired a majority stake in Sukoon International Holding Company through a merger with Cambridge Medical & Rehabilitation Center (CMRC).

The merger, which was initially announced in December 2022, creates the largest pan-GCC post-acute care provider with c.400 operational beds and an additional c.300 bed expansion underway, across UAE and Saudi Arabia.

The merged entity is a core component of Amanat’s new market-leading healthcare platform, Amanat Healthcare, which consolidates Amanat Holdings’ portfolio of healthcare assets into a single platform.

Read: Amanat Holdings launches new healthcare platform

The transaction was completed through a non-cash share swap, whereby certain of the Sukoon shareholders received c.15 per cent of Amanat’s shares in CMRC in return for Amanat receiving additional shares in Sukoon. Following completion adjustments, Amanat will own c.85 per cent of the post-merger entity.

Amanat’s chairman, Hamad Alshamsi, said: “The completion of the merger of Sukoon with CMRC marks an important milestone in Amanat’s strategy to realise shareholder value through active portfolio management. The merger, which creates the largest post-acute care provider in the GCC, places Amanat in a strong position to benefit from the significant post-acute care bed gap across Saudi Arabia and the UAE.

“The merged entity strengthens our newly announced platform, Amanat Healthcare, consolidating its position as a market-leading provider of specialized healthcare in the GCC and enhances the range of strategic value creation options for the platform, including a potential IPO in the near-term.”

Amanat Holdings expands portfolio

Amanat’s acting chief executive officer, John Ireland, added: “Amanat acquired a minority stake in Sukoon in 2015, and we subsequently worked successfully with our colleagues and partners to transform it into one of the leading post-acute care and rehabilitation providers in Saudi Arabia. With the expansion of our existing facility underway, we are confident we will continue to grow profitability and margins at Sukoon in the near term.

“We now look forward to working with the market-leading management teams at CMRC and Sukoon to integrate our post-acute care businesses, delivering both revenue and cost synergies and providing a strong platform for future growth.”

In October last year, Amanat Holdings acquired a 60 per cent stake in Human Development Company (HDC), a provider of special education and care (SEC) services in Saudi Arabia, for an initial consideration of SAR220.3m (Dhs215.3m) and a contingent consideration of up to SAR47.1m payable subject to future earnings growth.

Read: UAE’s Amanat acquires 60% stake in Human Development Company for Dhs215.3m