“Fakeeh Medical” reveals details of the acquisition of 50% of “Safwa Medical”
Dr. Soliman Abdul Qader Fakih Hospital Company revealed "Fakih Medical"Details of the agreement to acquire a 50.01% ownership stake in Safwat Diagnostic Medical Company, from Sulaiman Abdul Qader Fakeeh Real Estate Company, for a total consideration of 70 million riyals, without achieving a net profit for the seller.
The company said in a statement on the website "Saudi Arabia trading"The total investment cost of 70 million riyals is divided into two main parts: The first is to pay a cash sum of 55.35 million riyals to Fakeeh Real Estate Company, in exchange for transferring 30,506 shares in Safwa Diagnostic Company to Dr. Soliman Abdul Qader Fakeeh Hospital Company.
This amount includes about 52.3 million riyals, representing the total amounts previously paid by Fakih Real Estate Company to the founders of Safwa Diagnostic Company for the purposes of increasing its capital, in addition to 3.05 million riyals representing the cost of the capital that Fakeeh Real Estate Company employed him during the period of its investment in the company.
It stated that the second part of the deal relates to the commitment of Dr. Soliman Abdul Qader Fakeeh Hospital Company to inject an amount of 14.65 million riyals directly into the capital of Safwat Diagnostic Company, in order to finance the company’s future expansion plans, in accordance with the approved share purchase agreements.
Accordingly, the company confirmed that Fakih Real Estate Company will transfer its share in Safwat Diagnostic Company to the company. Dr. Soliman Abdul Qader Fakeeh Hospital at a price equivalent to the cost of its investment, after completing all necessary regulatory procedures.
The company indicated that the independent financial evaluation estimated the indicative fair value of the 50.01% stake in Safwa Diagnostics Company in a range between 114 and 125 million riyals, explaining that the total consideration for the deal amounting to 70 million riyals reflects a discount ranging between 38% and 44% compared to the indicative fair value range.
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