On 20 March 2019, our client Al-Ahsa Development Company (Al-Ahsa) entered into an agreement for the acquisition of the entire share capital of Al-Salam Medical Services Company (CJSC) (Al-Salam), the owner of a healthcare facility under construction in Saudi Arabia. Al-Ahsa is a public company listed on the Saudi Stock Exchange (Tadawul).
In consideration for the sale of their shares in Al-Salam, the shareholders of Al-Salam will be issued new shares in the amount of approximately 30% of the share capital of Al-Ahsa. The transaction is valued at SAR 250 million (approximately US$67 million). The transaction requires approval of the Saudi Arabian Competition Authority, Capital Market Authority and Tadawul before closing.
The healthcare facility is currently in the process of being developed and construction is being funded, in part, by a facility granted to it by the Saudi Arabian Ministry of Finance.
The King & Spalding corporate team on the matter consists of partners Simon Rahimzada, James Stull and Nabil Issa, senior counsel Mohammed Al Ammar, senior associate Adnan Doha and associates Melissa Chan and Hamzeh Al Rasheed. Partner, Zaid Al-Farisi and counsel Asal Saghari advised on the financing aspects, while associate Timm Smith advised on the construction aspects. Al-Ahsa is also being advised by Falcom Financial Services as financial advisors.