Riyadh – Mubasher: EFG Hermes, listed on the Egyptian Exchange (EGX), announced the completion of its advisory on the establishment of a joint venture (JV) between NMC Healthcare, listed on the London Stock Exchange (LSE), and Hassana Investment Company, the investment arm of Saudi Arabia’s General Organization for Social Insurance (GoSI).

The new JV will be one of the largest healthcare projects in Saudi Arabia in terms of the number of beds, the Cairo-based investment bank said in a statement.

Under the transaction concluded on Monday, NMC owns a 53% stake through contributing five assets in Saudi Arabia and injecting EGP 250 million in the JV.

In addition, GOSI owns a 47% stake through its wholly-owned subsidiary after contributing its 38.88% stake in National Medical Care Co. (CARE), listed on the Saudi Stock Exchange (Tadawul), at a price of SAR 54 per share.   

The JV acquired an additional stake of 4.629 million shares in CARE, or 10.3% of the company’s capital, raising its stake to 22.07 million shares, or 49.2 %, in CARE's share capital.

The transaction is EFG Hermes’ first merger and acquisition deal in the Saudi market, Co-CEO of the Investment Bank at EFG Hermes, Mohamed Ebeid, said.