|21 January, 2020

UAE's Amanat board approves stake acquisition in VPS Healthcare

Special committee has been formed to enter into initial agreements with VPS Group

An investor looks at stock information in front of an electronic display board at the Dubai International Financial Market March 21, 2010.

An investor looks at stock information in front of an electronic display board at the Dubai International Financial Market March 21, 2010.

REUTERS/Ahmed Jadallah

Dubai-listed Amanat Holdings (Amanat), a healthcare and education investment company, has received an approval from its board of directors to acquire a strategic stake acquisition in VPS Healthcare, a private healthcare service provider in UAE and Oman.

The board of directors has approved the transaction “in principle”, having considered the legal structuring options and the financial considerations, and approved the initial offer of the deal, Amanat said in a statement on the Dubai Financial Market (DFM).

The company also said that a special steering committee has been formed for this investment opportunity, to pursue assessment of the transaction, appoint external advisors and enter into initial agreements with VPS Group.

Amanat had said in an earlier bourse filing that the transaction is in line with its strategy to invest in major healthcare service providers to ‘grow and scale profitably’.

The GCC healthcare sector is forecast to grow at a compound annual growth rate (CAGR) of 6.7 percent by 2022 with Gulf governments’ spending expected to increase to $30.5 billion, according to Amanat.

(Writing by Nada Al Rifai; editing by Seban Scaria)

(nada.rifai@refinitiv.com)

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© ZAWYA 2020

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