Abu Dhabi’s IHC acquires 15% stake in UAE’s Burjeel Holdings to expand its portfolio

The deal is expected to add 'great value' to IHC's growth platform

Abu Dhabi's International Holding Company is buying a 15 per cent stake in Burjeel Holdings, the UAE healthcare services provider. Khushnum Bhandari / The National

Abu Dhabi’s International Holding Company (IHC) has acquired a 15 per cent stake in UAE's healthcare services provider Burjeel Holdings as it plans to expand its portfolio.

The acquisition, subject to regulatory approvals and completion of legal formalities, will help IHC to diversify its healthcare investments both locally and regionally, the group said in a filing on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.

The value of the deal was not disclosed.

“We are very pleased with Burjeel's progress in expanding its market positions beyond the UAE,” Syed Shueb, chief executive of IHC, said in a statement.

“This new acquisition will add great value to our strong growth platform."

Burjeel Holdings, founded in 2007, has a network of 60 assets, including hospitals and medical centres, as well as pharmacies and other allied services in the UAE and Oman. The company also aims to enter Saudi Arabia with investments of up to $1 billion planned in the Arab world’s largest economy through joint ventures and public-private partnerships.

“Having IHC on board has a solid strategic rationale for us, as it will have a transformative impact through the addition of new capabilities, capital and access to new markets,” said Shamsheer Vayalil, chief executive of Burjeel Holdings.

Majority-owned by Abu Dhabi's PAL group of companies, IHC is boosting its portfolio through acquisitions in the UAE as well as in other countries. Last month, the company said it had acquired a 50 per cent stake in Turkish renewable energy company Kalyon Enerji for Dh1.8bn ($490 million) to expand its clean energy portfolio.

IHC, with a market capitalisation of Dh619bn, is also expanding in India, Asia’s third largest economy, and completed a Dh7.3bn investment deal with India’s Adani Group that is led by billionaire industrialist Gautam Adani.

As part of the transaction, the Abu Dhabi company is investing in three green-focused companies of the Adani Group — Adani Green Energy, Adani Transmission and Adani Enterprises, it said in May.

In the UAE, IHC snapped up a controlling stake in Abu Dhabi investment company Al Qudra Holding and a 60 per cent share of Afkar Financial and Property Investments.

It also holds a 48 per cent share in Emirates Driving Company and a 60 per cent interest in Royal Horizon Holding and its subsidiaries, among others.

The latest deal comes as investment in the healthcare sector have been growing amid the Covid-19 pandemic, which provided a shot in the arm for pharmaceutical, long-term care centres and diagnostic services.

Dubai-listed investment company Amanat Holdings acquired Cambridge Medical and Rehabilitation Centre for $232m in one of the region's biggest healthcare deals last year.

In January, Abu Dhabi holding company ADQ merged its healthcare subsidiaries with Alpha Dhabi’s Pure Health Medical Supplies to streamline their portfolios, creating the UAE’s largest healthcare provider.