Dallah Health and Fakeeh Medical Announce Completion of Mohammad Fakeeh Company Deal

Logo of Dr. Suleiman Abdulqader Fakeeh Hospital Company

Dallah Health Company and Dr. Suleiman Abdulqader Fakeeh Hospital Company announced the completion of the sale of the entire capital share of Dr. Mohammad bin Rashid Fakeeh and Partners Company to Fakeeh Medical Company. Dallah Health said in a statement on Tadawul that this was done after fulfilling the deal conditions, and as a result, its ownership of 31.21% of Dr. Mohammad bin Rashid Fakeeh and Partners Company was transferred to Fakeeh Medical Company, and the cash amount was paid by the buyer.

It explained that an amount of 466.77 million riyals was paid to it, and according to what was disclosed in the announcement of the signing of the deal agreement on May 6, 2026, a specific amount of the total cash consideration, amounting to 100 million riyals (Dallah's entitlement percentage is 31.21%), was placed in an escrow account to cover 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 found).

Fakeeh Medical stated in a separate statement on Tadawul that all shares of Dr. Mohammad bin Rashid Fakeeh and Partners Company were transferred to the company for a total of approximately 1.6 billion riyals, paid in cash, and the consideration includes an amount of 100 million riyals deposited in a guarantee account for a limited period to cover any potential obligations that may arise after the completion of the deal. It explained that the deal led to the company owning 100% of the capital of Dr. Mohammad bin Rashid Fakeeh and Partners Company, which will be merged into the group as a wholly owned subsidiary, and is considered the group's second hospital in Riyadh, significantly expanding the group's presence in the city.

The company stated that the deal will contribute to diversifying the group's payer and patient mix in Riyadh by adding cash payment segments and insurance within Network 6 / Class B, complementing the group's current positioning in higher insurance segments and categories.

It added that in the medium term, integration between the two facilities is expected to achieve operational efficiencies, cost savings, and enhanced revenue growth opportunities through the Fakeeh Healthcare Group network. It expected that the deal would lead to an increase in the group's consolidated debt levels, due to financing the acquisition and assuming the target company's outstanding net debt, and the acquisition would also increase the company's presence in terms of bed capacity in Riyadh by about threefold, by adding the target company's operational capacity of 350 beds to the company's current hospital in Riyadh with a capacity of 185 beds, forming an operational platform of two locations with a capacity of 535 beds. According to Argaam data, Fakeeh Medical Company had signed in May a binding share purchase agreement with all shareholders of Dr. Mohammad bin Rashid Fakeeh and Partners Company, including Dallah Health, to acquire 100% of the company's capital for 1.6 billion riyals, and the General Authority for Competition approved the deal last month.

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