Bupa to increase stake in Bupa Arabia to 34.25%

11 May 2017
Bupa environment

Bupa, the international health and care company, has announced that it proposes to increase its stake in Bupa Arabia by 8% from 26.25% to 34.25%. 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.

Since 1997, Bupa and Nazer Group have developed a long and successful partnership. In 2008 Bupa Arabia was listed on the Saudi stock market (Tadawul) in the KSA and Bupa Arabia is now one of the largest health insurance providers in the KSA, with over 3m customers and has delivered significant growth in revenue, profit and customer numbers over the last 10 years.

The increase in Bupa’s stake will strengthen Bupa’s presence in the KSA, in line with its strategy of investing in its market position in geographies in which it already operates. It is recognition of the opportunity to help 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. 

Between the parties, Bupa and Nazer Group will together continue to account for over 50% of the shares in Bupa Arabia and the agreed price of SAR 143 per share (approximately £190m) reflects the partners’ confidence in the strong future prospects of Bupa Arabia. 

Wayne Close, Acting CEO of International Markets at Bupa, said: "We are absolutely committed to supporting Bupa Arabia’s ongoing growth and meeting the health and wellbeing needs of customers in the KSA. This decision is an acknowledgment of Bupa Arabia’s success and underlines Bupa’s commitment to develop the private health insurance market in the KSA, where there is huge potential. This will be a fantastic 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: “We appreciate the constructive long-term partnership that we have forged with Bupa over the past 20 years. Following our success in building Bupa Arabia into the company it is today, our priority is to ensure it continues to meet the demands of customers in the fast changing health insurance landscape in the Kingdom. At Nazer Group, we see a bright future ahead for Bupa Arabia. We remain committed to supporting its long-term success through our continued shareholding and through my role as the Chairman of the Board and Tal Nazer’s position as CEO.” 

Bupa Arabia has one of the widest healthcare networks in the KSA with over 320 clinics or hospitals in the region. Bupa Arabia’s share price has risen strongly since the 2008 IPO.

Notes to editor

*The agreement is on the acquisition of a portion ASAS’, a Nazer Group Company, stake in Bupa Arabia

For more information please contact:

Bupa

Samantha Lo Blanco, Senior Corporate Communications Manager
+44 7701 280645 / samantha.loblanco@bupa.com

Bupa Arabia

Bupa Arabia is one of the largest health insurance providers in the Kingdom of Saudi Arabia (KSA) giving over 3m customers access to high quality healthcare.

As a result of a partnership entered into between Bupa and Nazer Group in 1997, Bupa Arabia was listed on the Saudi stock market (Tadawul) in the KSA in 2008 and its share price has risen strongly since then. Bupa Arabia has one of the widest healthcare networks in the KSA with over 320 clinics or hospitals in the region. It provides a highly differentiated service model, as well as the most comprehensive healthcare offering in the KSA health insurance market. The most recent customer satisfaction scores were 91%. For more information, visit www.bupa.com.sa

Nazer Group

Nazer Group was founded in 1991, for a diverse range of entrepreneurial investments in Saudi Arabia and abroad. It has controlling interests in various subsidiaries, joint ventures and other investments – including a strong portfolio of healthcare businesses with world-class quality healthcare partners.

About Bupa

Bupa's purpose is helping people live longer, healthier, happier lives. 

With no shareholders, our customers are our absolute focus. We reinvest profits into providing more and better healthcare for the benefit of current and future customers.

We have 16.5m health insurance customers, provide healthcare for 10.6m people in our clinics and hospitals, and look after over 22,000 aged care residents.

We employ around 80,000 people, principally in Australia, the UK, Spain, Hong Kong, Chile, Brazil, Poland, New Zealand, Saudi Arabia, India and the USA.

Health insurance is around 70% of our business. In a number of countries we also run clinics, dental centres, hospitals and care homes and villages.

For more information, visit www.bupa.com.

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