We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Tue 22 Nov 2016 02:09 PM

Font Size

- Aa +

Investcorp buys stake in Saudi Arabia's Al Borg Medical Laboratories

Source close to the deal says Investcorp is investing up to $200m for a 30-40% stake in the company

Investcorp buys stake in Saudi Arabia's Al Borg Medical Laboratories
Image for illustrative purpose only.

Investcorp has bought a stake in Saudi Arabia's Al Borg Medical Laboratories, one of the largest private medical laboratory chains in the Gulf, it said on Tuesday.

The alternative investment firm did not disclose the size of the stake or the amount it was investing, although a source close to the deal said Investcorp was investing in the range of $100 million to $200 million for a 30 to 40 percent stake in the company.

Investcorp, which expects to reach its target of $25 billion for assets under management (AUM) next year, has made several investments in the past 12 months, most recently the debt-management business of Britain's 3i Group PLC for 222 million pounds ($277 million).

Al Borg has 53 laboratories across eight countries in the Gulf and Africa, offering medical laboratory testing services to hospitals, clinics, companies and individuals.

The companies said the investment would help Al Borg to expand in the kingdom and further afield in the region.

"The healthcare sector in Saudi Arabia is highly defensive and underpinned by favourable demographics, supportive regulations and greater medical awareness," said Mohammed al-Shroogi, co-chief executive of Bahrain-based Investcorp.

Investcorp's last investment in Saudi Arabia was in January 2016 when it invested in Bindawood Holding, one of the leading supermarket and hypermarket chains in the kingdom.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
t t 3 years ago

It is positive to see more and more investors deal with Saudi projects and companies. This, actually, indicates that the economical Saudi state is reassuring and secure. Moreover, I believe many foreign investors would work with Saudis in the near future.