UAE-based investment firm Amanat Holdings has announced that its board had approved an acquisition of 35 per cent stake in healthcare firm Sukoon International Holding Company.
The investment firm, which was set up to invest in education and healthcare sectors, said that it approved about SAR 200m ($53.3m) in funds to one of its affiliated entity that will take a stake in Saudi-based Sukoon.
Sukoon, a closed joint stock company founded in 2007, provides extended care and critical care medical services to patients who are no longer suited for care within a traditional hospital setting. The company caters to patients who require a shorter period of stay to undergo rehabilitation to those who require long-term care.
Currently Sukoon operates a 200-bed facility at Jeddah, which is running at around 75 per cent capacity utilization, a statement said.
Amanat did not disclose any plans for further expanding Sukoon’s operations within the kingdom or in the GCC.
The Dubai-listed firm, which has a capital of Dhs 2.5bn, first announced its decision to acquire a stake in Sukoon this May. But the firm had said that the deal will be finalised only upon receiving regulatory approval and a nod from the board of directors.
Amanat has been actively acquiring targets in the region, especially in the healthcare sector as it looks to tap into the economic potential in the industry.
Earlier this year, Amanat bought a stake of 14.4 per cent in Abu Dhabi healthcare group Al Noor Hospitals for Dhs 250m.
The deals are also in line with the company’s strategy of investing in markets of the UAE and Saudi Arabia.
According to the company’s chairman Faisal bin Juma Belhoul, Amanat will invest 70 per cent of its capital in acquisitions across mature businesses. Another 25 per cent will be used for setting up facilities for its operating assets while a five per cent of the capital will go into international partnerships.
Such strategy has also impacted its balance sheet positively with the company posting a profit of Dhs 1.6m in the first half of 2015.