NMC Healthcare announced a new Saudi joint venture with the kingdom's General Organisation for Social Insurance
Shares of Abu Dhabi-based NMC Healthcare rose as much as 6 percent on Tuesday after the company raised its full-year revenue guidance in light of a new joint venture with Saudi Arabia’s Hassana, the investment arm of the kingdom’s largest pension fund.
On Tuesday, NMC raised its 2019 revenue guidance to a low of $2.5 billion and an upper level of $2.54 billion.
Previous guidance announced in November set the upper limit at $2.465 billion.
Additionally, NMC’s EBIDTA (earnings before interest, tax, depreciation and amortisation) was forecast at between $575 and $585 million. The previous forecast was for between $566 and $576 million.
On Tuesday, NMC finalised its JV deal with Hassana, the investment arm of Saudi Arabia’s General Organisation for Social Insurance (GOSI).
Following the close of the transaction, NMC owns a 53 percent stake in the newly formed NMC Healthcare Saudi Arabia Company – NMC KSA – while GOSI will own a 47 percent stake. NMC will retain operational control of NMC KSA.
“I personally view this joint venture as one of the top landmark events in the history of NMC since its inception,” said Prasanth Manghat, the CEO of NMC Healthcare. “We see many opportunities of leveraging growth.”
Additionally, Manghat said that NMC has a “clear vision” for turning NMC KSA “into one of the most dominant players in the country”.
“We will rapidly implement our strategic plan, bringing higher value services in the country, such as IVF, cosmetics and leverage our association with Boston and Cincinnati children hospitals to strengthen paediatrics in KSA,” he added.