Dallah Health announced the completion of the sale of its 31.21% stake in Dr. Mohammed bin Rashid Al-Faqeeh and Partners Company to Dr. Sulaiman Abdul Qader Faqeeh Hospital Company ("Faqeeh Medical") for a total cash amount of SAR 497,983,407.

The transaction is part of Dallah Health's strategy to enhance the efficiency of its investment portfolio, support its financial position and cash liquidity, thereby solidifying its growth and expansion plans, whether by establishing new hospitals or acquiring existing ones, with a focus on assets that it operates directly and fully owns.

The transaction is expected to have a positive financial impact on Dallah Health, including capital gains on the sold shares, as well as expected savings in future financing costs, given that the company intends to use the proceeds primarily to reduce the current murabaha facilities on its balance sheet, which will improve its financial leverage. Dallah Health does not expect any material negative impact from the sale on its profitability in the coming quarters, as the company it exited is in an expansion phase and contributed only marginally to profits in the past period.

The ownership of Dallah Health in Dr. Mohammed bin Rashid Al-Faqeeh and Partners Company has been transferred to Faqeeh Medical Company, and an amount of SAR 466.77 million was paid to Dallah Health by the buyer. A specific amount of the total cash consideration, amounting to SAR 100 million (with Dallah Health's entitlement proportion being 31.21%), has been placed in an escrow account to cover any breaches or issues that may be discovered in the target company after completion, for a period of 6 months (or any longer period until the resolution of any dispute, if any).

The transaction was completed after fulfilling all regulatory and contractual conditions and obtaining the necessary approvals from the relevant regulatory authorities, including the issuance of a no-objection decision from the General Authority for Competition regarding the economic concentration resulting from this transaction on June 14 of this year.

It is noteworthy that Dallah Health receives more than 3.8 million patient visits annually through a wide network of hospitals and specialized clinics, in addition to home healthcare services. Relying on an experienced team and elite specialized doctors, Dallah Health operates according to the highest standards of quality and patient safety, and adheres to human and professional values that have made it the premier reference for trusted healthcare in the Kingdom.

Dallah Health Group is listed on the main market of the Saudi Stock Exchange (Tadawul) under the symbol 4004 and ISIN SA135G51UI10.

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