UAE: Amanat Holdings considers stake in VPS Healthcare

Dr. Shamsheer Vayalil, founder of VPS Healthcare and vice chairman and managing director at Amanat Holdings

Amanat Holdings, one of the GCC’s largest healthcare and education investment companies, is assessing the acquisition of a strategic stake in the Middle East operations of VPS Healthcare

VPS Healthcare was founded in 2007 by Dr. Shamsheer Vayalil, who also holds the position of vice chairman and managing director at Amanat Holdings. The group is one of the largest integrated private healthcare service providers in the UAE with a growing foothold in Oman.

In a statement, Amanat said: ‘The transaction is still at an early stage and is contingent upon commercial and business due diligence as well as internal and regulatory approvals.’

Amanat has appointed JP Morgan as its financial advisor on the transaction.

The potential deal comes as Amanat seeks to grow its healthcare portfolio in the Middle East, with the sector expected to grow at a 6.7% CAGR by 2022 with government spending expected to rise to D112bn (US$30.5bn) by 2021 from D8.8bn in 2016.

The potential deal also comes at a challenging time for regional hospital operators following a report from Muddy Waters which stated it had ‘serious doubts’ about Abu Dhabi-based NMC Healthcare’s financial statements.