Yas Holding looks to buy part of NMC's distribution business - sources

NMC Trading distributes a wide range of products including food, pharmaceuticals, medical equipment and consumables

  
General view of NMC specialty hospital in Abu Dhabi, United Arab Emirates, February 11, 2020.

General view of NMC specialty hospital in Abu Dhabi, United Arab Emirates, February 11, 2020.

REUTERS/Satish Kumar

DUBAI - Abu Dhabi investment group Yas Holding is looking to buy a part of hospital operator NMC Health's distribution business, three sources told Reuters.

Administrators from Alvarez & Marsal were appointed in April to oversee NMC Health after months of turmoil over its finances.

Shortly afterwards they launched sales processes for NMC's assets, which include the company's international fertility business, to raise funds and pay back creditors. 

NMC Trading distributes a wide range of products including food, pharmaceuticals, medical equipment and consumables.

The administrators have split NMC Trading into six units, two of which make up about 70% of the business, said one of the sources, declining to be named as the matter is not public.

Yas Holding has shown intent to buy one of the two, the source said.

Alvarez & Marsal declined to comment. Yas Holding was not immediately available for comment.

Yas Holding is a business development and investment company which is active in sectors including technology, agriculture, healthcare, education and aviation, its website said.

Yas has signed a purchase agreement for the deal, which will need approval from the creditors to be finalised, a second source said.

NMC's troubles began in December when short-seller Muddy Waters raised concerns over the company's financial statements. 

NMC Health is the largest private healthcare provider in the UAE. Its operating entities were unaffected by the appointment of administrators in April and services have continued.

(Additional reporting by Saeed Azhar. Editing by Jane Merriman) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))

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