24th Feb 2015 08:02
LONDON (Alliance News) - NMC Health PLC Tuesday announced a deal to buy up an 86.4% stake in Barcelona-based fertility treatment clinic Clinica Eugin for EUR143 million, as it posted a rise in pretax profit for 2014.
The private healthcare provider in the United Arab Emirates posted a pretax profit of USD77.5 million, up from USD69.1 million, as revenue rose to USD643.9 million from USD550.9 million and it posted a higher depreciation charge.
NMC proposed a total dividend per share for the year of 5.4 pence, up from 4.4 pence a year before.
The company said the macro-economic outlook for the UAE and Gulf region for 2015 remains positive, which it expects to continue to support the growth of its business divisions.
The Emirate of Dubai began rolling-out mandatory medical insurance in the last quarter of 2014 and will continue the roll-out over two years, NMC said. This will boost its new hospital in Dubai, as well as its pharmaceutical distribution business.
NMC said the acquisition of Eugin helps it achieve several elements of its strategy, and is expected add "significantly" in its first year, with a positive effect on margins. It is also in talks over other potential acquisition opportunities which would allow it to increase its scale across the United Arab Emirates and gulf region, although these remain at a "preliminary stage."
"This transaction offers NMC the opportunity to become the leading integrated women's health provider from fertility through obstetrics and paediatrics in the UAE, and also establishes a foothold for the company in the growing medical tourism market," said Chief Executive Officer Bavaguthu Raghuram Shetty in a statement.
NMC will acquire the stake in the clinic from ProA Capital de Inversiones SGECR SA using its cash and credit facilities.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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