Saudia (SV, Jeddah International) has set in motion plans to privatize its healthcare services unit - Saudia Medical Services (SMS) - Reuters has reported quoting informed sources.
In March, SMS was granted official Saudi Ministry of Health approval to expand its offerings beyond airline personnel, to the public at large. The move was seen as an important step to boost its appeal ahead of its proposed sell-off.
According to the report, the carrier conglomerate has appointed Jadwa Investment to be an adviser for the sale. Potential buyers have already been sought out and, given the appeal of the firm, the sale process could be completed by the third quarter of the year. The sources added that Saudia is looking to sell its entire shareholding in SMS and is not seeking a partial stake sale.
Saudia Cargo and MRO division Saudia Aerospace Engineering Industries (SAEI) have been slated for partial privatization along with the Prince Sultan Aviation Academy, Saudia Private Aviation (Jeddah International), and the Saudi Airlines Real Estate Development Company. Saudi Airlines Catering Co. raised USD347 million during its IPO in 2012.
Saudia is using the sale of non-core assets to help turn the airline profitable by 2020.
