By Ed Attwood
Mediclinic completes remaining 49.63% purchase of Emirates Healthcare for US$224m
A South African firm has completed the takeover of Emirates Healthcare Limited (EHL), Dubai’s biggest private healthcare provider, via the purchase of the remaining 49.63 percent stake in the company that it does not already own.
Mediclinic International bought the stake from General Electric (5.24 percent) and the Varkey Group (44.39 percent). The deal for both stakes is worth US$224m.
EHL has two hospitals - Welcare Hospital and The City Hospital - and eight operational clinics in Dubai. A ninth clinic will open later on this year.
The company employs around 1,900 staff and treats over 600,000 patients a year.
Mediclinic, South Africa’s second-biggest private healthcare operator, said it would fund the purchase via a equity and debt funding raised in Dubai via Standard Chartered.
The Dubai-based Varkey Group, which runs the GEMS Education network of schools, said that the move was in line with its strategy to focus on education.
“The decision by Varkey Group to exit its healthcare interest is only due to the Group’s strategic intent of continuing to focus and grow its education business at a faster pace globally,”said CN Radhakrishnan, a senior director at the Varkey Group, in a press statement.