Health

NMC Health exits KSA operations with the sale of its 53% stake in SMCG

NMC Health exits KSA operations with the sale of its 53% stake in SMCG
NMC Health, an Abu Dhabi-based hospital operator, has reportedly exited operations in Saudi Arabia by selling its 53% stake in its Saudi subsidiary SMCG (Saudi Medical Care Group).

This announcement marks NMC’s final sale of international assets as the company preps to complete its process of administration. NMC anticipates the transaction to be executed in the latter half of this year. The firm has however not identified the buyer or declared the value of the deal.

According to the Chief Executive of NMC Healthcare Michael Davis, the successful sale of the company’s last significant international asset marks a crucial milestone as it takes the final steps of exiting the administration process with the company emerging as a focused, robust, customer-centric, profitable business.

Richard Fleming, the Joint Administrator of NMC and NMC Healthcare and the Managing Director of Alvarez & Marsal Europe LLP, cited that the sale represents a crucial step for NMC Health. The company has progressed through the administration process with the support of its partners and creditors.

Two years ago, NMC Health witnessed a collapse after a report issued by Muddy Waters, the activist investor, claimed that the company understated its debt level and inflated its cash balances. Subsequent investigation unravelled over USD 4 billion worth of hidden debt that resulted in the company’s failure.

Before being administered in April 2020, NMC had nearly 200 healthcare units across 17 countries. The hospital operator is expected to come out of administration after its creditors sanctioned a restructuring process a year ago.

In 2019, NMC Health established a joint venture with Hassana Investment Company, the investment unit of the Saudi government’s General Organisation for Social Insurance. It offered five of its private hospital assets along with an additional injection of cash to own a 53% stake in NMC KSA, which is now named SMCG. Its portfolio currently includes three clinics and seven hospitals in Saudi Arabia.

Source credits: https://www.thenationalnews.com/business/2022/03/21/nmc-health-sells-53-stake-in-its-saudi-joint-venture/

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