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. Suleiman Abdul Qader Faqeeh Hospital ("Faqeeh Medical") for a total cash amount of SAR 497,983,407.

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

The transaction is expected to have a positive financial impact on Dallah Health, including the capital gain on the sold shares, in addition to the expected savings in future financing costs, given that the company intends to use the proceeds primarily to reduce the current Murabaha facilities in its statement of financial position, which will improve its financial leverage. Dallah Health does not expect any significant negative impact from the sale on its profitability in the coming quarters, as the company from which Dallah Health exited was in an expansion phase and contributed marginally to profits in the past period.

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 has been paid to Dallah Health by the buyer. A specified amount of the total cash consideration, amounting to SAR 100 million (of which Dallah Health's entitlement is 31.21%), has been escrowed in a trust account to cover breaches or issues that may be discovered in the target company after completion, for a period of six months (or any longer period until resolution of any dispute).

The deal was completed after fulfilling all regulatory and contractual conditions and obtaining the necessary approvals from the relevant regulatory authorities, including the issuance of a non-objection decision from the General Authority for Competition regarding the economic concentration resulting from this transaction on June 14 of last year.

It is worth noting 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 care services. Relying on an experienced team and a select group of specialized physicians, Dallah Health operates according to the highest standards of quality and patient safety, and is committed to the human and professional values that have made it the premier reference for reliable healthcare in the Kingdom.

Dallah Health Group is listed on the Saudi Stock Exchange's main market (under the symbol: 4004, and ISIN: SA135G51UI10).

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