Riyadh – Mubasher: Dallah Healthcare Company (DHC) signed on Monday, 13 November an agreement with AWJ Investment Co to establish a joint venture (JV) of closed joint stock firm to build and operate a hospital.

The hospital will be located in Al Manar, with an initial capital of SAR 500,000, DHC will own 56% stake, and AWJ Investment Co will own 44% stake, according to the a statement to the Saudi Stock Exchange (Tadawul).

After the Saudi healthcare firm obtains the regulatory approvals it will pump SAR 350 million to contribute into establishing the hospital, while AWJ Investment Co will provide a land of 150,000 square metres at a value of SAR 270 million.

Any company of the two parties can cancel the contract agreement in case of not getting the regulatory approvals within a year of signing.

DHC forecasted a positive financial impact of the transaction on long-term.

By 12:18 pm KSA time, Dallah’s stock remained stable at SAR 105.20.