Amanat, a Dubai-based investment firm, has stalled discussions to acquire a stake in Abu Dhabi-based hospital operator VPS Healthcare Group.
The company announced the decision on Sunday, throwing cold water on a deal that was initially envisioned to expand its healthcare portfolio in the region.
“Both parties have agreed to stop their discussion in relation to the transaction,” Amanat said in a statement to the Dubai bourse, without disclosing further details.
“Amanat will continue to assess other opportunities aligned with its investment strategy to establish platforms that can grow and scale profitability in order to build long-term value for its shareholders,” the company added.
The collapse of the talks came just as another UAE-based healthcare company, NMC Health, has found itself in hot water after American short-seller Muddy Waters questioned the London-listed firm’s finances and sent shares plummeting more than half in December.
Amanat, whose investments include hospitals and universities in Dubai and Abu Dhabi, had earlier announced it was in talks to acquire a “strategic” stake in VPS.
The Dubai-listed company wanted to expand its presence in the region, where the healthcare market was valued at more than $21 billion in 2019 and estimated to hit more than $33 billion by 2024.
Founded in 2007 by Dr. Shamsheer Vayalil, VPS operates a chain of hospitals and medical centres in the Middle East, Europe and India.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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