Middle East Healthcare Company announces approval of awarding of contracts for the construction of Medical Tower and Inpatient beds expansion in SGH Jeddah to IHCC (Related Party)
| Element List | Explanation |
|---|---|
| Announcement Detail | Middle East Healthcare Co. (Saudi German Health) announces approval of awarding of Contracts for the construction of Outpatient Tower (14 clinics) and Inpatient beds expansion (207 beds) in Saudi German Hospital Riyadh to International Hospital Construction Company (related party) for SAR 223.3 million as follows: -
1. The awarding of the contract is approved by the Board of Directors on 06/07/2022 subject to the approval of the Ordinary General Meeting. 2. The recommendation of the Board of Directors shall be presented to the next General Assembly for a vote. 3. The total cost of project is SAR 223.3 million 4. Company expects to complete the project within 36 months from the date of award. 5. The project is expected to be financed partly through bank loans and partly through internal generation by the company. 6. Related parties: International Hospital Construction Company is a related party in which three directors of the company namely Sobhi A. Batterjee Khalid A. Batterjee and Sultan Sobhi Batterjee are shareholders. 7. The recommendation was made on an arm’s length basis following the process of bidding and evaluation. The interested directors stayed away from the discussions on this agenda and abstained from voting for approval. 8. Additional Information: The project is considered to have material positive impact on the revenues and income of Middle East Healthcare Company (Saudi German Health) details of which shall be announced in due course. |
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