Investcorp in talks to buy minority stake in Saudi-based Al Borg Medical Laboratories

Bahrain-based private equity firm Investcorp Bank is in exclusive talks to buy a minority stake in Saudi Arabia-based healthcare company Al Borg Medical Laboratories, according to people with knowledge of the matter.

The deal could value the company at more than 1 billion Saudi riyals, the people said, asking not to be identified as the information is private. Ernst & Young is advising Al Borg on the sale, they said.

The Bahrain-based money manager, the Gulf’s largest private investor in US real estate, said in July that Abu Dhabi sovereign investment fund Mubadala Development will acquire a 20 per cent stake. Al Borg is the Middle East’s largest chain of private medical laboratories, providing medical tests for individuals and healthcare companies, according to its website.

Private investment in Saudi Arabia’s healthcare industry is picking up as the government embarks on an economic transformation plan that aims to boost the contribution of private sector spending to 35 per cent from 25 per cent. Abu Dhabi-based NMC Health has invested US$32 million in the kingdom’s healthcare sector, deputy chief executive officer Prasanth Manghat said in an interview with Bloomberg Markets Middle East on Monday.

A spokesman for Investcorp declined to comment, while Ernst & Young and Al Borg did not respond to requests to comment.

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