Amanat sells minority stake in Saudi Arabian healthcare provider for $118m

The exit from International Medical Centre generated about $27.24m, including dividends

Amanat Holdings, the Dubai-listed company that specialises in healthcare and education sector investments across the GCC, has sold its minority stake in International Medical Centre in Saudi Arabia for Dh433 million ($118.m).

Amanat’s 13.13 per cent stake, which it held through the Saudi Healthcare and Education Fund, was sold to Kun Investment Holding, Amanat said on Sunday, in a statement to the Dubai Financial Market, where its shares are traded.

The IMC deal has generated about Dh100m, including dividends, since Amanat’s investment in IMC. The divestment is expected to generate a net gain on the sale of Dh40m, it said.

Amanat's exit is in line with its “communicated strategy to exit minority investments where the path to control is challenging or limited and focus on being influential shareholders”, the company said.

The sale of IMC stake enables Amanat to pave the way “towards more specialised opportunities” in healthcare and education sectors for future monetisation.

“The divestment of IMC was timely and at an attractive multiple as we continue to deliver on our strategic priorities and exit minority positions that can enable us to recycle capital for investments that are better aligned with Amanat’s platform model,” Amanat chairman Hamad Al Shamsi said.

The Saudi Healthcare and Education Fund, which is indirectly owned by Amanat, first acquired an equity interest in IMC in January 2017. The 300-bed multi-disciplinary tertiary care hospital serves Saudi Arabia’s Western Region and targets the high-end segment of the market.

However, Amanat said it had invested in the asset with a “different vision” five years ago and is now “forming specialised platforms that have the potential to also be leading providers with Amanat as an influential or majority shareholder”, Mr Al Shamsi said.

With the proceeds generated from the exit of both IMC and Taaleem earlier this year, Amanat now has north of Dh700m of dry powder to invest on “the right future investments”, the company said.

In April, Amanat sold its 21.7 per cent stake in UAE education provider Taaleem for Dh350m. That company earned Dh225m, including dividends, from the sale, Amanat said at the time.

Earlier this month, Amanat acquired real estate assets of Cambridge Medical and Rehabilitation Centre in Abu Dhabi. The Dh46m deal, made through Amanat’s social infrastructure platform, was the first healthcare sector real estate investment for the company.

Amanat swung to a net profit in the second quarter, as lower costs and gains from the sale Taaleem boosted income.

Its net income for three months to the end of June climbed to Dh203.8m, compared to a loss of Dh5.1m in the same quarter of 2020, the company said in a statement in August.

Updated: September 26th 2021, 2:35 PM