Bupa, the international healthcare company, proposes to increase its stake in Bupa Arabia by 5% from 34.25% to 39.25%. This follows an agreement on the acquisition of a portion of Nazer Group’s stake in Bupa Arabia. Bupa is now submitting formal applications to the relevant Kingdom of Saudi Arabia (KSA) authorities for the customary regulatory approvals.
Bupa Arabia is an associate business, established as a joint venture between Bupa and Nazer Group, which have together developed a long and successful partnership since 1997. Bupa Arabia is one of the largest and most successful health insurance providers in the KSA, servicing 3.3m customers, and has grown customers as well as revenue and profit over the last 10 years.
Bupa and Nazer Group will together continue to account for the controlling stake, holding over 50% of the shares in Bupa Arabia. The agreed price of SAR 100 per share (approximately £77m/ SAR 400 million) reflects the partners’ confidence in the strong future prospects of Bupa Arabia.
The increase in Bupa’s stake in Bupa Arabia is in line with its strategy of investing in its market position in geographies in which it already operates, as well as its ongoing commitment to meeting the healthcare needs of customers in the KSA. It is recognition of the opportunity to further develop the private health insurance market in the KSA, which the government’s Saudi Vision 2030 Strategy called out as a key growth sector and important pillar.
Simeon Preston, CEO of Bupa International Markets said: "We are committed to developing the private health insurance market in the KSA and meeting the healthcare needs of customers in the region. This decision is recognition of Bupa Arabia’s success and our commitment to supporting its ongoing growth. It is another step forward in the delivery of our strategy, offering further opportunities for strong and sustainable growth.”
Loay Hisham Nazer, Chairman of Bupa Arabia and Founder and Chairman of Nazer Group, added: “Our focus is to ensure that Bupa Arabia continues to meet the demands of customers in the ever changing health insurance market in the Kingdom. We appreciate the partnership that we have built with Bupa over the past 20 years and remain committed to supporting Bupa Arabia’s long-term success through our continued shareholding. At Nazer Group, we believe Bupa Arabia will continue to enjoy success and growth, through delivering for customers.”