Picture: THINKSTOCK
Picture: THINKSTOCK

ABU DHABI — NMC Health had withdrawn its bid for rival United Arab Emirates-based (UAE-based) healthcare provider Al Noor Hospitals due to valuation concerns, vice-chairman and CEO Bavaguthu Raghuram Shetty said on Monday .

JSE-listed Mediclinic International last month announced an £11.60 (R254) per share bid for London- listed Al Noor, a 39% premium on the £8.35 it was trading at. NMC and UAE-based VPS Healthcare said they were mulling competing offers.

"The transaction is not going ahead because the valuation doesn’t look near to our expectations," Mr Shetty said on Monday .

"We’re looking to invest the same money in the region for better returns for our shareholders ."

Earlier on Monday , Mr Shetty had said the company had submitted an offer for Al Noor, but would not negotiate on price, following a report in UAE newspaper The National that said NMC Health might withdraw from the process on concern the firm would have to raise "a lot of debt" or do a rights issue to outbid rivals.

Mediclinic said last month that on completion, Al Noor would be renamed Mediclinic International plc and the enlarged group would have a premium listing on the London Stock Exchange, and an inward secondary listing on the JSE and possibly the Namibian Stock Exchange . Reuters, Staff Writer