Home Industry Healthcare Saudi’s Dallah Health to acquire stakes in Al Ahsa, Al Salam Medical Services Dallah will issue 3.89 million shares to Ayyan as part of the capital increase, valued at SAR660m by Gulf Business August 22, 2024 Image: Getty Images Saudi’s Dallah Healthcare Company (Dallah) recently signed a share purchase and subscription agreement with Ayyan Investment Company (Ayyan) to acquire Ayyan’s stakes in Al Ahsa Medical Services Company and Al Salam Medical Services Company. The transaction will be executed through a capital increase, with Dallah issuing new shares to Ayyan. The agreement follows a non-binding memorandum of understanding signed earlier this year in February. Terms of Dallah’s agreement with Ayyan Under the terms of the deal, Dallah will acquire 97.41 per cent of the capital of Al Ahsa and 100 per cent of Al Salam’s capital. The net market value of Al Ahsa was agreed at SAR420m, valuing its acquisition at approximately SAR409m. Meanwhile, Al Salam was valued at SAR250.9m, which Dallah will fully acquire. The agreement includes a mechanism for additional cash consideration depending on changes that may occur between the signing and the completion of the transaction. The transaction values Dallah at SAR16.56bn, based on a volume-weighted average share price over 106 trading days. The company will issue 3.89 million shares to Ayyan as part of the capital increase, valued at SAR660m. Following the transaction, the healthcare company’s capital will increase by 3.99 per cent from SAR976.8m to SAR1.02bn, raising the total number of shares to 101.57m. The company’s existing shareholders will see their ownership percentage diluted to 96.17 per cent, potentially impacting their voting power and influence over company decisions. The transaction is subject to several regulatory approvals, including from the Capital Market Authority and the General Authority for Competition. The agreement includes standard terms and conditions, including termination clauses if regulatory approvals are not secured within six months or if material breaches occur. The company will publish a detailed circular to its shareholders once regulatory approval is granted, outlining the risks and terms of the transaction. Tags acquisition Ayyan Investment Company Dallah health Healthcare Saudi Arabia You might also like S&P revises Saudi Arabia’s outlook to positive on strong non-oil economy Bapco Energies sells stake in Saudi Bahrain Pipeline to BlackRock fund Saudi Arabian Mills prices IPO at top of indicated range to raise $271m 5 key strategies for business success in the Middle East