Eastern Medical eyes acquisitions

Abu Dhabi-based United Eastern Medical Services (UEMS), a healthcare investment company in the region, is negotiating for acquisition of stakes in the healthcare sector and joint ventures with prominent business families in the capital. CEO and Managing Director Mohammed Ali Al Shorafa said the company has already identified two assets in the sector for acquisition that will be announced soon. He said they are negotiating for the acquisition of stakes in two large medical centres in Abu Dhabi. Al Shorafa said: "We are looking for a number target companies for acquisition in Abu Dhabi. There are two assets currently that we have identified and we are already working on financial evaluations. Hopefully, we will announce the first acquisition in October. It is a large medical centre. "We have an undisclosed agreement with them therefore I cannot name the asset but that is in Abu Dhabi, which is our backyard of investment. The other acquisition will come after the first announcement. Both are medical centre and both in Abu Dhabi." About the size of stakes in these two transactions, he said percentage is being negotiated and once the stake sizes and financial evaluations are reached the acquisitions will be announced. "These will be our first two acquisitions. We have strategic 10-year plan that includes acquisitions in different and lucrative assets in the emirate and beyond. The plan also includes joint ventures in the healthcare centre. "We have already initiated the joint venture process with a leading business family in the emirate and will bring more businesses from other sectors to healthcare investment as it is essential and interlinks with all," he said. About funding of the projects and investment plans for acquisitions and joint ventures, he said funds will be raised through both equity and credit that will not be problem. "We have financially strong stake-holders in the company who have the funds. Also our national banks are comfortable with us. So far funding has not been a problem for us because our projects are healthcare related that have experienced the least affect of the global financial crisis." About the company's flagship project, $205 million 21-storey and 300-bed Danat Al Emarat Hospital, he said the ground-breaking will done within the next two weeks and will be completed by mid 2011 as per the schedule. The hospital for women and children, mainly providing maternity services, is dubbed as a five star facility with luxury accommodation facilities for family members to stay close those admitted. About the current assets of the company, Al Shorafa said: "We have projects under our management, including Danat Al Emarat, exceeding Dh1.5 billion. "While we are working and studying new projects, we expect to double our portfolio of projects and assets very soon." Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .