Pure Health is to make a $500 Million Minority Investment in Equity Group Investment
Pure Health, an Alpha Dhabi subsidiary and one of the largest health platforms in the UAE, is set to make a $500 million minority equity investment in Ardent Health Services. The agreement’s details have been finalized, and conditions guiding both parties are subject to the US law where Ardent health services are based.
What are the Specifications of the Agreement?
Ardent health services are one of the fore health providers in Nashville. A similarity between Ardent and Pure Health is that they both provide core health care services and are forerunners in their respective jurisdictions.
With over 26,000 employees, 30 hospitals, and 200 care sites spread out in six states in the US, the appeal to hold a stake in Ardent has led Pure health services to make a $500 million equity commitment to Equity Group Investment, the majority shareowner of Ardent Health Services. Pure Health has about 25 hospitals and 100 clinics, including diagnostic, lab, and rehabilitation infrastructures across the UAE.
The agreement is unsurprising news given that investment rates have spiked in the healthcare sector, most likely influenced by the pandemic and its aftermath. The acquisition is based on certain customary closing prerequisites and will be finalized as soon as all the US regulatory boxes are checked and approval is granted.
Why Ardent Health Services?
Undoubtedly, the deal between both companies is one of the most expensive this year. All stakes are on, and the dividends are expected to be worth the investment. Although the acquisition does not provide Pure Health with a seat on the Board of Directors’ table, the company has Board observer rights which allow an investor to be part of a company’s board meetings.
The investment also does not indicate cross-border expansion or combined service delivery by both companies. Instead, as remarked by Equity Group Investment’s founder and chairman Sam Zell, the investment is the start of a partnership for a productive relationship with Pure Health as they continue to be gradually invested in the dynamics of the US health care system.
The CEO of Pure Health, Farhan Malik, also remarked that the investment set a new health care pace for the UAE’s global health services. Pure Health aims to leverage the top-notch health standards provided by the US to achieve such quality and more within the UAE.
On its part, Ardent Health aims to unlock additional knowledge on health areas such as longevity, as Pure Health is renowned for specializing in such areas. Ultimately, both companies hope to leverage the agreement to provide the highest standards of health services and adhere to the best clinical practices.
Conclusion
The news of the agreement between these two healthcare moguls comes when there has been significant investment in the healthcare sector, even by the UAE government itself, as evidenced by the newly constructed Dubai Hospital. The partnership has the beginnings of a revitalized global health sector brought on by alliances and knowledge transfer between companies and countries.
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Last Updated on 11 months by News Editor
