Amanat Holdings PJSC (Amanat), the region’s largest integrated healthcare and education company, is pleased to announce that it has acquired, through an affiliate, 35 per cent beneficial interest in Sukoon International Holding CJSC (Sukoon) for a consideration of SAR 179.2 mn.
Sukoon is a Saudi Arabian healthcare company specializing in extended care and critical care medical services (“LTC”) with operations in Jeddah and expansion plans underway in Riyadh.
Faisal Belhoul, Chairman of Amanat, noted, “Amanat’s development and investment strategy is to partner with companies that demonstrate a strong shareholder base, proven management and differentiated business model. We partner with companies that not only benefit immediately from our expertise in value creation, but also present significant scope for growth and thus further capital commitment. Sukoon’s shareholders include highly reputed and prominent investors with whom we are very pleased to partner alongside and look forward to being a long-term strategic partner.”
Khaldoun Haj Hasan, CEO of Amanat, commented, “The LTC sector in Saudi Arabia is in its early stages with demand, forecasted to reach 12,936 beds, expected to far exceed supply, projected to reach 2,059 beds by 2017. At present, demand is met inefficiently in terms of cost and quality by conventional hospitals who have no choice but to treat such patients whose needs are fundamentally different than what the hospitals are set up to provide or what the patients really require.”
“Sukoon, which is set up exclusively as an LTC provider, is an ideal solution for both patients who need skilled nursing care and hospitals who need to discharge long-term patients in order to make room for new ones and focus on their core expertise. Sukoon, being the leading integrated extended care and long-term operator of scale is well positioned, in partnership with Amanat, to capitalise on a projected gap in supply and quality,” he added.
Ranjit Bhonsle, COO of Amanat, further stated, “Amanat’s expertise in governance, organisational development, corporate strategy and corporate finance complements the capabilities of the existing shareholders, board of directors and management.Sukoon’s differentiation strategy rests on a value proposition of high quality service at cost effective prices that appeals equally to patients and payors (comprising government, corporations and insurance companies).”
“To maintain Sukoon’s differentiation, Amanat will collaborate with management to invest in innovative care solutions, which it will do so through its corporate venture partnership programme, as well as geographic and service portfolio expansion. Sukoon’s growth plan requires significant investment in physical infrastructure which it will either seek to lease or build to suit. In the case of the latter, Amanat, through its social infrastructure development arm, is well positioned to provide a turn-key solution,” he added.