Dallah Healthcare profit to grow on IMC acquisition; similar moves eyed in 2023: Exec

Tarek Alkasabi, Chairman of Dallah Healthcare

Dallah Healthcare Co.’s acquisition of the International Medical Center Co. (IMC) is deemed a significant strategic move as the latter’s occupancy level matches its aspirations, besides being essential to expand into Makkah, Chairman Tarek Alkasabi told CNBC Arabia.

The healthcare service provider’s strategy is focused on Riyadh, being the largest market, followed by Makkah and Jeddah. Further strategic takeovers in 2023-2024 are under study, particularly next year. Dallah Healthcare so far outperformed its peers in terms of acquisitions.

Dallah Healthcare Co.’s debts reached SAR 1.9 billion by the end of 2022. They are being paid on a quarterly basis, thanks to its strong cash flows that allow for repaying more than SAR 200 million annually.

Moreover, financing costs rose by SAR 18 million this year, but did not impact its profit levels. However, this figure could go higher in 2023 if interest rates continue rising, which the healthcare service provider can absorb through business growth and profitability.

Elsewhere, Alkasabi added that Dallah Healthcare committed to paying cash dividends between 50% and 60% of its profits since its listing — a trend it will maintain and strengthen.

Dallah Healthcare’s shareholders gave the green light, on Dec. 27, for increasing capital to acquire Kun Investment Holding Co.'s stake in IMC, Argaam reported.

It will issue 7.68 million new shares in favor of Kun Investment.