Published Date : Oct 07, 2015
Stakes of shares in the Abu Dhabi based healthcare provider Al Noor Hospitals has seen numerous changes in terms of administrative control in the past year, prompting speculations that the days of independence of the company could be threatened in the near future.
Contrary to these predictions, the shares of the service provider jumped up 9 per cent when it was heard that it was in talks with the South African company Mediclinic International about a possible tie-up which would create the biggest private care supplier in Abu Dhabi and Dubai, with operations also in Southern Africa and Europe.
The potential agreement, which will be classified as a reverse takeover, will issue the new Al Noor shares to Mediclinic. Mediclinic is trying to expand its business in countries where increased household incomes have led to the rising demand for private healthcare services.
A deal with Al Noor will allow Mediclinic to boost operation in the UAE market, as well as the markets in Switzerland and southern parts of Africa. The combined operations of the two renowned healthcare services providers will benefit from a listing on the London Stock Exchange.
Mediclinic, the biggest private healthcare provider of South Africa, will be the second Johannesburg stock to have an additional listing on an international stock exchange this year. Abu Dhabi has been the focal point of Mediclinic’s expansion plans for quite some time now and Al Noor gives an attractive option for the company to fortify its plans.
Al Noor has benefitted in Abu Dhabi due mostly due to the introduction of compulsory health insurance in the year 2007. This now covers nearly 97 per cent of inhabitants of the country, many of whom suffer from lifestyle diseases such as diabetes and obesity.