Dallah Health Services Holding Co. (Dallah Health) announces approval of its Board of Directors on 25 Thoul Ki'dah 1435H corresponding to September 20, 2014 to invest in subscription in Dr. Mohammed Rashid al-Fagih & Co. (target company), a limited liability company planning to build a general hospital in the east Riyadh with 308 beds including nurseries in addition to 43 emergency beds and 147 clinic rooms and their ancillaries. The resolution included the following:
1- Investment through contributing to the shares offered amounting to SR129 million representing 30% of the capital of the Target Company amounting to SR430 million.
2- Agreement with the Target Company that Dallah Helath on a management contract to run the hospital to be built.
Important elements of this investment as follows:
1- Dallah health is planning to fund this investment through its operations in addition to long-term Islamic financing.
2- The final amount of investment depends on the results of allocating partners' shares.
3- It is planned that the Targeted Company start building of the aimed hospital during the first quarter of 2015 with a total cost of SR630 million.
4- It is planned to complete building this project in the fourth quarter of 2017.
5- It is expected that this investment will have positive impact on the financial results of Dallah health.
- Note that D. Mohammed Rashid al-Fagih is a partner and member of the Founding Board of Directors of the Target Compan. D. al-Fagih, a major shareholder of Dallah Health and a member of its Board of Directors.
- It shoube also noted that the Mr. Fahad bin Abdullah al-Qasim is a member of the Founding Board of Directors of the Target Company and he is a member of the Board of Directors of Dallah Health.
- This subject will be presented to Dallah Health's General Assembly in its next meeting.
- Further development of this project will be announced duly.