Riyadh – Mubasher: Dallah Healthcare Company penned a deal to acquire the shares of Ayyan Investment Company in Al Ahsa Medical Services Company and Al Salam Medical Services Company.
Dallah will acquire 97.41% shareholding in Al Ahsa and 100% of Ayyan’s equity in Al Salam by way of a capital increase through the issuance of new shares in Dallah to Ayyan, according to a bourse filing.
The net market value of Al Ahsa's equity was agreed at SAR 420 million. Accordingly, the valuation of the shares acquired by Dallah stands at SAR 409.12 million.
Meanwhile, Al Salam's net market value of equity amounted to SAR 250.87 million.
The two Tadawul-listed companies inked the non-binding share exchange deal last February and entered into the purchase and subscription agreement on 19 August 2024.
The valuation of Dallah for the purpose of the transaction is SAR 16.55 billion, equivalent to SAR 169.51 per share, using the volume-weighted average share price (VWAP) for 106 trading days.
Based on the 14.61 million shares to be acquired in Al Ahsa, the exchange ratio is approximately 0.16 new shares in Dallah for each share in Al Ahsa.
The exchange ratio for Al Salam is around 0.07 new shares in Dallah for each share in Al Salam after acquiring 20 million shares.
Following the transaction, the ownership percentage of Dallah’s existing shareholders will decrease to 96.17%. in this regard, the ownership percentage of Dallah’s shareholders in Dallah will be lower than their current ownership percentage.
Dallah will increase its capital by 3.99% to SAR 1.01 billion from SAR 976.81 million. The new capital will be distributed over 101.57 million shares, compared to 97.68 million shares.
In the first half (H1) of 2024, Ayyan Investment suffered net losses valued at SAR 104.26 million, while Dallah Healthcare posted 56.52% year-on-year (YoY) lower net profits at SAR 231.14 million.
