Mubadala to Weigh Buying Jadwa’s U.A.E. Health-Care Assets

(Bloomberg) -- Mubadala Investment Co. is in talks to buy Jadwa Investment Co.’s health-care assets in the United Arab Emirates, according to people familiar with the matter.

The Abu Dhabi-based wealth fund is working with Rothschild & Co. on structuring a potential deal with the Saudi Arabian private equity group, some of the people said, asking not to be identified because the talks are private.

Jadwa owns a 42% stake in Abu Dhabi-based United Eastern Medical Services LLC. UEMedical last year acquired a controlling stake in Saudi Arabia’s Al Muhaideb Dental Clinics Group in a 500 million dirham ($136 million) deal.

UEMedical could be valued at least $800 million if the deal proceeds, some of the people said. It’s not clear which assets could be included in Mubadala’s deal with Jadwa, the people said. Discussions are still at an early stage and may not result in a transaction, they said.

Representatives for Mubadala, UEMedical, Jadwa and Rothschild declined to comment.

Rapid Expansion

The Middle East’s health-care sector has been expanding rapidly as hospital operators try to keep up with growing populations. U.A.E. private equity firm Gulf Capital recently announced a $100 million deal for a fertility clinic in Abu Dhabi, while Amanat Holdings PJSC is in talks to acquire a stake in VPS Healthcare Group.

Still, the potential deal comes at a challenging time for regional operators. NMC Health Plc has been facing allegations by Carson Block’s Muddy Waters Capital LLC that the company’s financial statements hint at potential over payment for assets, inflated cash balances and understated debt. NMC has called those claims unfounded and vowed to conduct an independent review.

Mubadala Investment is part of Abu Dhabi’s efforts to diversify its economy by turning oil revenue into profitable investments while also attracting expertise and jobs. The firm merged with International Petroleum Investment Co. in 2017 and absorbed Abu Dhabi Investment Council a year later. It now manages about $229 billion in assets.

©2020 Bloomberg L.P.

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