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

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

The transaction is expected to have a positive financial impact on Dallah Health, including a capital gain on the shares sold, in addition to expected savings in future financing costs, given that the company intends to use the proceeds primarily to reduce the volume of existing murabaha facilities on its statement of financial position, 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 from which Dallah Health exited is in an expansion phase and contributed only marginally to profits in the recent period.

The ownership of Dallah Health in Dr. Mohammed bin Rashid Al-Faqeeh and Partners Co. 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 portion of the total cash consideration, amounting to SAR 100 million (of which Dallah Health'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 post-completion, for a period of six months (or any longer period until any dispute is resolved).

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

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 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 leading 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.