Shares in healthcare group NMC Health (LON:NMC) jumped over 30% in early trade on Thursday as the group released its half year results following reports of two parties’ offers to purchase a 40% stake in the group.
NMC Health has received offers from two competing groups for a stake in their international healthcare business which is said to be offered at a premium to the market price.
Shares traded as high as 2748p on Thursday as the company reported results for the six months to 30th June.
Post IFRS 16 EBITDA rose 22.5% to $323.5m as the group said it remained on track to meet full-year guidance.
Prasanth Manghat, CEO, commented on the results:
“NMC Health again achieved strong performance in the first six months of the year, as we continue to deliver on our growth strategy in our attractive target markets. Our ability to perform strongly in a challenging environment testament to NMC’sstrategy of developing niche, differentiated verticals in our core markets that provide the best possible care for our patients.
All key financial and operational metrics of our healthcare and distribution businesses performed in line with our guidance. We also made good progress on increasing free cashflow during the period and we see room for further improvement in H2 2019, as has been the trend in previous years.
We are also particularly pleased to have closed our strategically important partnership with GOSI/Hassana Investment Company which ranks as one of the defining events in the history of NMC. This partnership will provide us with the ideal platform to establish a dominant position in the attractive Saudi Arabia healthcare market.
2019 remains focused on integration and realization of synergies from previous acquisitions. The Board remains committed to continuously improving transparency and enhancing the Group’s governance and ESG framework. The establishment of a new committee to oversee all related party activities in addition to the current robust program is a good example in this regard.
We continue to view the future with confidence and reiterate our guidance for the full year 2019.”