GCC’s largest healthcare and education investment company Amanat Holdings has sold its 21.7 percent stake in Taaleem Holdings for $95.3 million (Dh350 million) to Dubai government-owned Knowledge Fund Establishment.
The divestment resulted in a total cash return of $61 million (Dh225 million) including dividends, Amanat said in a statement to the Dubai Financial Market, where its shares trade.
Amanat first acquired a 16.3 percent stake in Taaleem in 2016 and then increased its stake to 21.7 percent by 2017. Taaleem is one of the largest leading providers of early childhood, primary and secondary education. The group currently operates from 9 facilities spread across Dubai and Abu Dhabi.
“Taaleem Holdings, a homegrown company, and a marquee asset was our first investment in the Education sector in the UAE. To date, our journey with Taaleem has complemented our approach to support the growth and development of the UAE Education sector. The sale of this asset is a significant milestone for Amanat and marks its first exit in five years at a very attractive return. In line with our strategic objective to assess our existing portfolio and each investments’ suitability to our platform model, we exited a minority position as an avenue to recycle the cash for other investment opportunities that are more strategically aligned as an influential shareholder.”
“The transaction is a clear representation of the value our team aims to deliver to our shareholders, despite the turbulent macro-economic environment brought on by COVID-19 and the vacuum of M&A activity in the region. This exit has given Amanat further balance sheet bandwidth to explore and seize investment opportunities that will support us on our journey to drive topline growth and improve our return profile as we continue to deliver shareholder value,” commented Mr. Alshamsi.
“This transaction is testament to the capabilities and the strength of the Amanat team, having driven the sale process of its first exit in education, successfully and with attractive returns,” said Dr. Mohamad Hamade, CEO of Amanat.
Earlier this year, Amanat has acquired Cambridge Medical and Rehabilitation Centre for $232 million in one of the region’s largest healthcare transactions.