Amanat Holdings launches new healthcare platform

Healthcare and education listed investment company Amanat Holdings has launched its new healthcare platform, Amanat Healthcare.

Amanat Healthcare consolidates the company’s portfolio of healthcare assets in the Middle East into a single platform with a footprint spanning the UAE, Saudi Arabia and Bahrain and an expected total capacity of 1,000 operational beds within three years.

By combining Amanat’s long-term, post-acute and specialist care assets in one entity, the platform aims to position itself as a key provider of specialised healthcare in the GCC.

Potential IPO for Amanat Healthcare considered

Amanat also plans to consider further value creation options for the platform including organic and inorganic growth opportunities, combinations with other synergistic assets, and a potential initial public offering (on a regional exchange in the near-term.

The holding company’s chairman, Hamad Alshamsi, said: “I am delighted to announce the formation and launch of Amanat Healthcare. At Amanat, our fundamental strength is creating value for stakeholders, and we have invested in assets, expertise and knowledge, to support our governments’ efforts in delivering modern and efficient healthcare that will enhance the quality of life for our population and concurrently deliver value to shareholders.

Alshami said the platform “will be a market leader in long-term, post-acute and specialised care in the region, with a footprint spanning the UAE, Saudi Arabia and Bahrain and an expected capacity of 1,000 beds within three years”.

He added: “In addition, we will also look at further strategic options for Amanat Healthcare, including inorganic growth opportunities that generate synergistic benefits with our existing world-class portfolio and concurrently explore potential monetisation opportunities for Amanat Healthcare, which may include a regional initial public offering in the near-term.”

Amanat’s acting chief executive officer, John Ireland, added: “The private healthcare market in the region continues to grow strongly, underpinned by favourable demographic and population trends in addition to a supportive government and regulatory environment designed to develop the sector to meet the growing needs of the population.

“The formation of Amanat Healthcare will enable Amanat to maximise the opportunity within the GCC through the creation of a new platform which combines quality specialised healthcare with strong financial performance.”

In February, the company announced that its adjusted net profit in 2022 grew 14 per cent to Dhs117.4m versus Dhs103.4m in 2021.  Adjusted total income grew 16 per cent to Dhs178.2m in 2022 versus Dhs153.7m in 2021. Adjusted earnings before interest, taxes, depreciation and amortisation grew 25 per cent to Dhs191.6m in 2022 versus Dhs152.7m in 2021.

Amanat’s FY-2022 financial results demonstrate solid #growth and are supported by a strong balance sheet that will drive future #performance.

Learn more about #Amanat 2022 financial performancehttps://t.co/TvLLBMCMNAhttps://t.co/lVIXqat85Khttps://t.co/h0LuMxPBy9 pic.twitter.com/uNNp2IKzIe

— Amanat Holdings (@amanatholdings) February 22, 2023

Commenting on the annual results, Alshamsi said: “Amanat continues to deliver on the strategy approved in 2020, with further growth in adjusted profitability following record financial performance in 2021.

“In the last two years we have concluded 9 transactions at a combined value of Dhs2.5bn, growing our platforms and resulting in a portfolio of market leading assets across the education and healthcare sectors in the GCC. As we look forward our focus is shareholder value creation, which we intend to deliver through the expansion of our platforms and future monetisation events, underpinned by consistent dividend distributions.

“In light of the strong financial performance the Board of Directors is recommending an Dhs100m dividend payout of Dhs4 fils per share or 88 per cent of profit attributable to equity holders.”

In other news, in December last year, Amanat Holdings acquired a 60 per cent stake in Human Development Company (HDC), a provider of special education and care (SEC) services in Saudi Arabia, for an initial consideration of SAR220.3m (Dhs215.3m) and a contingent consideration of up to SAR47.1m payable subject to future earnings growth.

Read: UAE’s Amanat acquires 60% stake in Human Development Company for Dhs215.3m

The transaction complements Amanat’s strategy and strengthens both its healthcare and education platforms by expanding their reach to cater to people of determination.