Arabian International Medical Holding Company (Tibah), listed on the Saudi Stock Exchange, announced the signing of a conditional share sale agreement to divest its 51% stake in Innovative Healthcare Holding Company. The transaction is valued at SAR 52 million, reflecting a total equity valuation of SAR 101.96 million for the target company.
Deal details and buyer
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company clarified that the buyer is Le Monde Holding Limited, a company registered in the Abu Dhabi Global Market in the United Arab Emirates. This agreement is subject to several terms and conditions, most notably obtaining the necessary regulatory approvals from the relevant authorities within the UAE. This move is expected to terminate the existing partnership between Tibiyah and Dr. Ayed Rabiaan Saleh Al-Qahtani in the obesity and cosmetic treatment sector.
The GLP-1 drug revolution and changing the market equation
This strategic decision by the board of directors of "Tibbiyah" comes in response to the radical transformations taking place in the healthcare sector globally and locally, particularly in the field of obesity treatment. The rapid emergence and widespread adoption of modern GLP-1 anti-obesity medications, such as Ozempic and Mongaro, have led to a structural shift in patient behavior and treatment plans.
These medical advancements have directly led to a decline in global and local demand for traditional bariatric surgery, negatively impacting the target market size for these clinics and their potential for future expansion and profitability. Based on these factors, Tibiya concluded that continuing this investment was no longer aligned with its long-term strategic objectives, which focus on sectors with sustainable growth.
Financial impact and capital restructuring
The company indicated that the divestment value exceeds the net book value of the investment by a negligible margin, and therefore the transaction is not expected to have a significant impact on the income statement for fiscal year 2025. Following the completion of the agreement, the consolidation of the financial statements of Innovative Healthcare Company will be deconsolidated from the “Medical” books effective December 31, 2025.
The company plans to use the cash proceeds from the deal to strengthen its financial position, pay off existing obligations, and redirect capital towards new investment opportunities that align with its growth strategy, reflecting the company's flexibility in dealing with rapidly changing market conditions.
Context of the healthcare sector in the Kingdom
This step falls within the broader context of the healthcare sector in Saudi Arabia, which is undergoing a major restructuring in line with Vision 2030. Major companies are moving towards improving their investment portfolios and focusing on modern medical technologies and specialized services with high added value, moving away from traditional models that may face technical or market challenges, thus enhancing the efficiency of the private healthcare sector and its ability to adapt to global innovations.
