Faheem Al-Hamid Okaz/Saudi Gazette JEDDAH – Tarek Al-Qasabi, chairman of the Board of Dallah Healthcare Holding Company, said his company's acquisition of Baegdo & Dr. Erfan Hospital is a landmark strategic step in expanding its activities in Jeddah and later to Makkah and Madinah. He was speaking to Okaz/Saudi Gazette after signing a memorandum of understanding with Bagedo Commercial Holding Co., and Mohamed Ahmed Erfan & Sons Holding Co. for the full acquisition of their shares in Bagedo & Dr. Erfan General Hospital Co. Al-Qasabi declined to disclose the amount of the deal, and attributed this to the Capital Market Authority rules. He said both parties will sign a contract to acquire all the shares after reviewing the concerned administrative, medical and financial procedures within the coming four to six months. Dallah Health signed the MoU with the two limited liability companies on March 30 to acquire the full share capital from its owners. Both parties agreed on an initial value for the shares of the target. According to the deal, payment of this acquisition will be done through cash settlement and issue new shares of Dallah Health with the remaining amount to the sellers through capital increase. Neither Dallah Healthcare and members of its Board of Directors nor its major shareholders own any stake in the target. The MoU is valid until Dec. 31, 2014 and extendable by agreement of all its parties. Dallah Health has appointed SAMBA Capital, as its financial advisor for the preparation and advisory services for this acquisition. During the period of this MoU, the company will perform the required financial, legal, technical and other due diligence operations and affirm the final valuation of the target. After completion of the due diligence operations, all parties shall sign a contract to acquire all the target's shares in addition to the final valuation of the target and thus the number of shares to be issued by Dallah Health to the sellers. Dallah Health's extraordinary General Assembly meeting will be scheduled to vote for the capital increase as part of the acquisition. The Capital Market Authority approvals will be sought for the related capital increase. Applications to the Ministry of Commerce and Industry will be submitted.
