Abu Dhabi state-owned sovereign wealth fund Mubadala Investment Company is reportedly considering purchasing NMC Health’s core hospital business, becoming yet another suitor for the troubled hospital group.
UAE’s largest private healthcare provider NMC ran into trouble last year after the revelation of more than $4 billion in undisclosed debt, which resulted in significant losses for both UAE and international lenders.
According to sources, the company, which is now in administration, is looking into selling its healthcare business in the UAE and Oman, which could bring in about $1 billion.
Mubadala, which manages over $230 billion in assets, is one of the investors and companies interested in the asset, the sources added. “As an investor, we regularly assess opportunities for their potential fit into our portfolio,” a source close to Mubadala told.
As per the early reports, other suitors include Abu Dhabi state-owned holding company ADQ and Europe’s largest private equity firm CVC.
“The potential sale is a price discovery exercise to determine whether NMC’s business can get the value its creditors seek, or whether the business should keep the assets, complete the restructuring, and sell when they can achieve the value they want,” commented a person familiar with the matter. NMC did not respond to a request for comment immediately.
At the end of last year, NMC Health (NMC) has signed an agreement with Fresenius Helios, a German private healthcare company, to sell its specialty IVF-care business Eugin Group for a total enterprise value of $525 million.
Headquartered in Abu Dhabi, NMC Health is a healthcare chain and distribution business subsidiary to NMC Holding LLC. The company has branch offices in Dubai, Ajman, Al Ain, and the Northern Emirates and manages over 200 facilities in 19 countries.