Saudi Arabia: In a bid to finance the working capital requirements, National Medical Care Co. has secured a SR350 million ($93.30 million) murabaha facility from the Gulf International Bank. 

In a statement to Tadawul, the company revealed that the facility comprises a SR100 million revolving loan, which will be renewed periodically and a SR250 million long-term loan for 10 years, which has a one-year grace period. 

Apart from using the Murabaha facility to meet the company’s working capital requirements, the loan will also support the firm’s future expansion and acquisitions.

Meanwhile, National Medical Care Co., in another statement to Tadawul, revealed that it inked a deal with Saudi Medical Care Group to purchase the entire ownership of Chronic Care Specialized Medical Hospital Co. in Jeddah for SR193.21 million. 

The company revealed that the deal is subject to customary purchase price adjustments made in light of the completion accounts mechanism under the agreement.

“The completion of the transaction is subject to a number of conditions, including without limitation, receipt of regulatory approvals or non-objection including the General Authority for Competition’s non-objection, purchaser’s general assembly’s consent on the transaction, the seller’s general assembly’s consent on the transaction and other customary conditions,” said National Medical Care Co. in the statement. 

The company further noted that the deal will help achieve its investment strategy via expansions in the healthcare industry. 

National Medical Care Co., listed in Saudi Arabia’s primary market TASI, reported a net profit of SR104.1 million in the first quarter of this year, up 45 percent compared to SR72 million in the same period of the previous year. 

In a statement, the company attributed the rise in net profit to an 18 percent increase in revenue due to higher business volume from the General Organization for Social Insurance, Ministry of Health and insurance segments.