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Mubadala mulls investment in healthcare company NMC Health

Mubadala NMC
Mubadala is reportedly considering buying a stake as well as acquiring a board seat in the healthcare company

Abu Dhabi-based Mubadala Investment Company is mulling investing in NMC Health, which is the UAE’s largest healthcare company, according to media reports.

Mubadala is considering options such as buying a stake in NMC Health and also acquiring a board seat.

Mudabala’s decision to invest in NMC Health comes at a time when the healthcare company is undergoing an investigation by the UK’s Financial Conduct Authority over allegations of fraud.

Carson Block’s Muddy Waters Capital has alleged that NMC Health’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt. NMC Health, however, has denied the allegations.

The investment decision also highlights the government’s decision to support the troubled healthcare business in order to maintain the kingdom’s reputation of being a key regional hub for business.

Mubadala is also looking to expand into the healthcare sector as the UAE takes various measures to reduce the economy’s dependency on oil.

Other investors that are also mulling investing in NMC Health beside Mubadala include Italian hospital operator Gruppo Ospedaliero San Donato. According to the company, they are working on a possible offer by working with their financial advisers.

Last month, local media houses reported that Mubadala is also planning to acquire Jadwa Investment’s healthcare assets in the UAE.

Reportedly, Mubadala is currently working on a deal with Rothschild for the healthcare assets. However, it is unclear which of the Jadwa’s healthcare assets in UAE will be included in Mubadala’s deal.

Last year, Mubadala Investment’s fully-owned subsidiary Mubadala healthcare, acquired Amana Healthcare, the region’s leading provider of long-term care, specialised rehabilitation, and home healthcare services.

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