22nd Aug 2019 08:37
(Alliance News) - Private hospital operator NMC Health PLC proposed a share buyback Thursday after reporting interim profit and revenue growth following a "strong" performance.
Meanwhile, Reuters news agency reported that two groups of bidders were looking to snap up a sizeable minority stake in the FTSE 100-listed firm.
Shares in the UAE focused company were 39% higher at 2,691.00 pence in London on Thursday, giving it a market capitalisation of around GBP5.6 billion.
For the six months ended June, pretax profit widened 18% to USD140.6 million from USD118.7 million the year prior. This was after revenue rose 33% to USD1.24 billion from USD932.0 million the year before.
"NMC Health again achieved strong performance in the first six months of the year, as we continue to deliver on our growth strategy in our attractive target markets," NMC Chief Executive Officer Prasanth Manghat said. "Our ability to perform strongly in a challenging environment testament to NMC's strategy of developing niche, differentiated verticals in our core markets that provide the best possible care for our patients."
"All key financial and operational metrics of our healthcare and distribution businesses performed in line with our guidance," Manghat added. "We also made good progress on increasing free cashflow during the period and we see room for further improvement in the second half of 2019, as has been the trend in previous years."
NMC does not pay an interim dividend.
"2019 remains focused on integration and realization of synergies from previous acquisitions," Manghat continued. "We continue to view the future with confidence and reiterate our guidance for the full year 2019."
In a separate announcement, NMC announced its intention to seek shareholder approval for a share buyback programme worth up to USD200 million in order to "take advantage of exceptional price volatility" at the firm.
Earlier on Thursday, Reuters reported two groups were making competing offers to buy a 40% stake in NMC worth up to USD1.9 billion.
The newswire - citing four sources familiar with the situation - said the stake being targeted for acquisition is currently owned by Abu Dhabi-based KBBO Group as well as Khalifa Butti Bin Omeir and Saeed Bin Butti Al Qebaisi.
Amongst the reported bidding firms is Chinese conglomerate Fosun International Ltd. The bidding parties are understood to be looking to pay a premium over the current market price for the NMC stake, but the sellers were understood to also be considering retaining at least some of their current stake.
https://uk.reuters.com/article/uk-nmc-health-m-a-exclusive/exclusive-two-groups-one-backed-by-chinas-fosun-bid-for-nmc-health-stake-sources-idUKKCN1VB20N
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