In September, GHP announced that it will accelerate the strategic option to find a partner and additional owner in its project in Saudi Arabia to deconsolidate its ownership over time. GHP has now entered an agreement with Dag Andersson and Robert Ball which means that the diabetes care efforts in Saudi Arabia will be operated in a new company, where GHP owns 49% and the remaining 51% is owned by Dag Andersson and Robert Ball. In relation to this, Dag Andersson will leave his role as board member in GHP Specialty Care AB, and will instead become chairman of the board in the new company.
The agreement includes a mechanism that allows GHP to account for 75% - 85% of the total company value at a future transaction. The new started company will bear the costs for business development in the Saudi Arabia project. GHP’s share of the result for the new company will be presented as a result share in net financial items.
GHP’s management contract in Kuwait will not be affected by this agreement and will still be wholly owned by GHP.
This change will allow GHP to have full focus on all the opportunities we see in Sweden and the initiatives presented during our Capital Markets Day, which is very exciting. At the same time, we will be fully focused and committed to the very potent project in Saudi Arabia with Dag, whom in his role as CEO for Diaverum established a significant dialysis operation in the country, and Rob, with long experience from business development in the region. I am very happy over this strong ownership structure, says Daniel Öhman CEO at GHP.
Dag Andersson has during many years successfully worked with establishing operations in Saudi Arabia, including his time as CEO for Diaverum. Currently, Dag is also CEO for Xvivo Perfusion AB, and a board member of Terveystalo Oy. Dag has been a board member at GHP since 2019.
Robert Ball is since March 2020 CEO of GHP International, and has previously built up National Ambulance LLC in United Arab Emirates.
The aim is to start a diabetes clinic pilot through a management contract in 2022, that will allow us to adjust our model to the country and to establish proof of concept for the subsequent expansion. The need for good diabetes care is huge in Saudi Arabia and our ambition is to build a network of diabetes clinics in the country over the coming years, says Daniel Öhman CEO at GHP.
When GHP in this way adjusts its costs and ownership, GHP International’s EBIT could almost reach the same levels as in 2020. In 2022, it is expected that GHP’s result share in the newly started company will to some extent have a negative impact on GHP’s net financial items.