Kingdom Holding signs MoU with Dallah to sell Care Shield stake

Kingdom Holding said on Wednesday that one of its subsidiaries has signed a non-binding memorandum of understanding (MoU) to sell its shares in Care Shield Holding Company to Dallah Healthcare Company through share swap and cash consideration.

Kingdom Investment and Development Company, which owns shares in Care Shield Holding Company, is proposing to sell its stake against shares in Dallah Healthcare and cash, Kingdom Holding said in a statement to Tadawul.

The two companies have agreed an initial relative valuation, but the final value of the proposed transaction will be determined only after completing the due diligence process. The MoU shall remain effective until December 31, 2019.

The transaction is, however, subject to approval from authorities, and the internal requirements of the two firms.

Furthermore, there are no related parties involved, the statement added.

Care Shield Holding Company owns Medical Service Projects Company (Kingdom Hospital), Consulting Clinics Company and Modern Clinics Pharmacy Company.

In a separate statement, Dallah Healthcare Company said that it has  appointed AlJazira Capital to act as its financial advisor and the proposed transaction is subject to completion of financial, tax, legal and commercial due diligence.