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05-Feb-2018<br />

Saudi hospitals close to hiring Goldman on merger<br />

The Malaysian Reserve<br />

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Monday, February 5th, 2018 at , World<br />

By BLOOMBERG<br />

LONDON • Saudi Arabian hospital operator Al Hammadi Co for development & investment<br />

is close to hiring Goldman Sachs Group Inc to advise on merger talks with National Medical<br />

Care Co, according to people with knowledge of the matter.<br />

Al Hammadi could finalise appointing Goldman Sachs in coming days, the people said,<br />

asking not to be identified because the information is private. The mandate isn’t final and the<br />

company’s plans could change, they said. National Medical Care is likely to work with<br />

JPMorgan Chase & Co, they said.<br />

A representative for Al Hammadi said the company will select an advisor soon, without<br />

providing any additional details. Spokesmen for Goldman Sachs and JPMorgan declined to<br />

comment.<br />

National Medical Care didn’t respond to requests.<br />

The two companies said in August they were in preliminary discussions about a potential<br />

merger that would create a company with a combined market value of US$1.9 billion<br />

(RM7.39 billion).<br />

Mergers and acquisitions in Saudi Arabia are set to pick up as slower economic growth<br />

encourages more tie-ups between firms, and new takeover rules are poised to make it<br />

easier to do deals. HSBC Holdings plc-backed Saudi British Bank and Alawwal Bank, in<br />

which Royal Bank of Scotland Group plc owns a 40% stake, are in talks to merge, while<br />

Jabal Omar Development Co also hired Goldman Sachs to advise on a potential merger<br />

with Umm Al Qura Development.<br />

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