NMC confirms no buyers so far have matched valuation

Wam

• UAE health major pulls out
• Differences over valuation
• Shareholder disagreements

The UAE’s troubled hospital operator NMC Healthcare confirmed that it has no buyers yet for the company, with differences around valuation cited as one of the reasons. 

Earlier this week, two people familiar with discussions around a possible sale said that Abu Dhabi-based PureHealth Holding, the UAE’s biggest healthcare group by number of facilities, had abandoned talks to acquire NMC due to disagreements over price.

“While we do not comment on specific discussions, to date none of the approaches have fully aligned with the size, complexity and underlying value of the business,” NMC said in a statement to AGBI. It declined to give any details about talks with PureHealth.

The withdrawal ends months of detailed negotiations between PureHealth and NMC shareholders, including its largest – Abu Dhabi Commercial Bank (ADCB) – which took a 40 percent stake in NMC after the health provider collapsed in 2020. 

With total debt of $4 billion, NMC owed ADCB $963 million.

People from two different companies involved in the discussions told AGBI that other NMC shareholders are willing to sell at PureHealth’s valuation but ADCB declined to sell at the price. No valuation details were given.

Spokespeople for PureHealth and ADCB declined to comment to AGBI.

In its statement NMC said it has been approached by “numerous local and international investors” after mandating investment banks and other advisors to “explore various opportunities for the business, including a potential sale.” NMC came out of administration two years ago.

Earlier this week AGBI reported that a Dubai court ordered NMC founder BR Shetty to pay more than $33 million to India’s Bank of Baroda as creditors continue to pursue claims against the embattled billionaire.

• PureHealth buys stake in Greece’s Hellenic Healthcare
• UAE’s PureHealth expands US healthcare presence
• PureHealth in talks to buy hospital operator NMC

PureHealth, backed by Abu Dhabi sovereign wealth fund ADQ, has been on an aggressive acquisition spree. It recently bought the UK’s Circle Health Group and a majority stake in Greece’s Hellenic Healthcare Group.

Listed on the Abu Dhabi Securities Exchange (ADX), PureHealth is owned by Abu Dhabi’s International Holding Company.

It posted record revenue of $7 billion last year, a 58 percent year-on-year increase. Some of this was down to its acquisitions. Net profit increased 78 percent to AED1.7 billion, according to financial results released this week.

PureHealth shares have fallen about 15 percent over the past year, trading at AED3.25 on Wednesday.