Strategic Roadmap and Financial Performance
Divestment | International Medical Center ("IMC")
IMC
Dec 2016
Best in Class
Multi-Disciplinary Hospital
المركز الطبي الدولي
International Medical Center
KSA
Stake: 13.13%
International Medical Center ("IMC") operates a
300-bed multi-disciplinary tertiary care hospital
that serves Saudi Arabia's Western Region and
targets the high-end segment of the market. In
July 2019, IMC completed the acquisition of a
medical complex in North Jeddah, comprised of a
primary care center with over 100 highly
qualified doctors; a state-of-the-art radiology
center; and a stand-alone day-care surgery
center with four ORs.
Investment AED 361 MN
Divestment Thesis
Divestment Highlights
✓ Strategically aligned with target operating model
Exited minority position to potentially reallocate funds in high yielding
assets with a majority or influential stake
Despite strong market position, market challenges resulted in a muted
growth in earnings
The multiple expansion from 10x to 15x indicates the value of exit
achieved
✓ Preserving value and divesting at a profit
Challenging exit given illiquidity, size of stake and influential position in
a private company
Exited at an estimated multiple of c. 15x EV/EBITDA on LTM Jun21 vs.
entry multiple of 10.3x in FY2016
The divestment is strategically beneficial for shareholders
Total cash returns of circa AED 100 million (including dividends)
Gain on sale of AED 42.6 million; Cash-on-cash return of circa 1.3x and
unlevered IRR of 5%
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