Mubadala Said To Be In Talks To Buy Jadwa's UAE Healthcare Assets

Mubadala Investment Co is in talks to buy Jadwa Investment Co’s healthcare 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.

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 and Jadwa declined to comment. A representative for Rothschild didn’t immediately respond to requests for comment.

Rapid expansion

The Middle East’s healthcare sector has been expanding rapidly as hospital operators try to keep up with growing populations. UAE private equity firm Gulf Capital recently announced a $100 million deal for a fertility clinic in Abu Dhabi, while Amanat Holdings 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.