BATIC buys additional 40% stake in AlShifa Medical Technology

Logo of BATIC Investments and Logistics Co.

BATIC Investments and Logistics Co. (BATIC) acquired on April 26, 2021, an additional 40% stake in its subsidiary, AlShifa Medical Technology Co., bringing up its ownership in the company to 100%.

The purchase will be financed from BATIC’s own resources, the company said in a bourse filing.

The equity valuation for the 40% stake stands at SAR 40,000, which is the current book value of the company.

AlShifa mainly operates in importing and selling wholesale and retail medical devices and supplies.

AlShifa posted a total revenue of SAR 82.4 million and a net profit of SAR 13.6 million for the period ended Dec. 31, 2020 (namely, six months and two days).

The financial impact of the acquisition is expected to appear starting from Dec. 31, 2021, BATIC added, noting that there are no related parties to the deal.

“The acquisition is in line with the company's strategy for growth and expansion, especially considering the large and rapid growth witnessed by the medical sector following aspirations of the Kingdom's Vision 2030 and the company's belief in its role in supporting and empowering vital sectors in a general helping to maximize the return on equity for the company's shareholders,” BATIC concluded.

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