Tuesday, July 21, 2026 18:8 | 2 minutes read

Dallah Healthcare announced the completion of the sale of its 31.21% stake in Dr. Mohammed bin Rashid Al Faqeeh and Partners Company to Dr. Sulaiman Abdulqader Faqeeh Hospital Company ("Faqeeh Medical") for a total cash consideration of 497,983,407 Saudi Riyals.

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

The transaction is expected to have a positive financial impact on Dallah Healthcare, including a 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 Healthcare does not expect any material negative impact from the sale on its profitability in the coming quarters, as the company from which Dallah Healthcare exited is in an expansion phase and contributed marginally to earnings during the past period.

Ownership of Dallah Healthcare in Dr. Mohammed bin Rashid Al Faqeeh and Partners Company has been transferred to Faqeeh Medical, and an amount of 466.77 million Saudi Riyals was paid to Dallah Healthcare by the buyer. A specified portion of the total cash consideration, amounting to 100 million Saudi Riyals (of which Dallah Healthcare's entitlement is 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 last.

It is worth noting that Dallah Healthcare receives more than 3.8 million patient visits annually through a wide network of hospitals and specialty clinics, in addition to home care services. Relying on an experienced team and a select group of specialized doctors, Dallah Healthcare 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 first reference for trusted healthcare in the Kingdom.

Dallah Healthcare Group is listed on the Main Market of the Saudi Stock Exchange (Tadawul) under the symbol 4004 and International Securities Identification Number (ISIN) SA135G51UI10.

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