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Dallah Healthcare Company announces the signing of a final agreement to acquire shares of Makkah Medical Center Company”) with a total cash value of SAR 161.1 million and 86.1% ownership in the company.

DALLAH HEALTH 4004 12.92% 176.60 20.20
Element List Explanation
Introduction With reference to DHC's announcement on 29/06/1441H (corresponding to 23/02/2020G) in relation to signing a non-binding memorandum of understanding between DHC and Makkah Medical Center Company, Dallah Healthcare Company announces the signing of a final agreement to acquire 78.59% of the shares of Makkah Medical Center Company) “MMCC”) (“transaction”)

Currently, DHC owns 7.5% of MMCC’s shares. After finalizing this transaction, DHC will be owning 86.1% of the Company’s shares.

Transaction Details Dallah Healthcare Company announces the signing of a final agreement to acquire 2,389,192 shares represent 78.59 % of the shares of ) “MMCC”) with a total cash value of SAR 161.1 million (approximately one hundred and sixty one million Saudi Riyals).
Transaction Value SR 161.1 million (Approximately one hundred and sixty one million Saudi Riyals).
Transaction Terms Completion under this Agreement is subject to a number of conditions, including, without limitation, obtaining the shareholders’ guarantees and pledges concerning their ownership of the shares to be sold and their right to transfer the ownership without any restrictions.

Obtaining the approval of the relevant governmental authorities.

Parties of the Transaction - Dallah Healthcare Company (the buyer).

- Shareholders of )“MMCC”) (the sellers).

Transaction Funding Method The transaction will be financed through DHC’s internal resources in addition to local financial institutions.
Transaction Execution Date 2020-06-29 Corresponding to 1441-11-08
Description of the Business of the Asset forming the Subject Matter of the Transaction Makkah Medical Center Hospital (owned by ) “MMCC”) is considered to be one of the top private sector hospitals in the Holy Capital, with Bed capacity of 120 beds and 40 clinics, with potential future expansion.
Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction MMCC’s total revenues has increased from SR 12.3 million in 2017 to SR 35 million in 2018. In 2019, total revenue of the company amounted to SR 110 million.
Transaction reasons The entry into this transaction comes as part of DHC’s expansion plan in Makkah region to support its market standing in providing premium medical service, which is in line with its strategic objectives.
Expected Impact of the Transaction on the Company and Its Operations The effect of the transaction on the company is expected to:

- Increase the market capitalization.

- Positive effect on the company’s financials.

- Support company’s revenues.

- Expand in different regions within the Kingdom.

Related Parties It should be noted that there are no related parties in respect of the transaction.

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