NMC Health exits KSA joint venture with the sale of its 53 percent stake in Saudi Medical Care Group

NMC had initially formed a joint venture (JV) in KSA in 2019, contributing five of its private hospital assets and an additional cash injection to own 53 percent stake in SMCG – which was formerly known as NMC KSA.

The sale of its majority stake in 2022 marks the completion of a key strategic milestone of focusing resources on the core Middle Eastern assets, the firm said in a statement.

One of the largest privately-owned healthcare groups in the UAE, NMC had a market value of $10 billion at its peak on the London Stock Exchange with more than 200 healthcare units in 17 countries – before allegations of fraud pushed it into administration in April 2020.

The disclosure of more than $4 billion in hidden debt left many UAE and overseas lenders with heavy losses. The firm approved a restructuring process in 2021.

With the sale of its majority stake in SMCG, NMC has now divested all its non-core international assets, the company confirmed.

The transaction is expected to complete during the second half of 2022, subject to all necessary regulatory approvals and customary closing conditions for the transaction.

Commenting on the move, the CEO of NMC Healthcare, Michael Davis, said: “In 2020, we presented a turnaround plan for NMC that would see us divest our international operations and focus on our core business in the UAE and Oman.

“It was clear to us that this approach would be in the best interest of the company and would provide the best value for our stakeholders. The successful sale of NMC’s last substantial non-core international asset represents an important milestone as we take the final steps to exit the administration process as NMC emerges as a robust, focused, profitable, customer-centric business.”

The managing director of Alvarez & Marsal Europe LLP and Joint Administrator of NMC PLC and NMC Healthcare, Richard Fleming, said: “This sale marks an important step for NMC. With the support of our creditors and partners, we have made excellent progress through the administration process.

“The sale announced today is one of the final pieces in this jigsaw, as we position NMC to deliver its long-term growth plan.”