SHFA to approve nearly 106m share acquisition in SMCI at EOGM

June 05, 2025 (MLN): Shifa International Hospitals Ltd (SHFA) held an Extraordinary General Meeting (EOGM) to consider and approve the acquisition of approximately 105.8 million shares of Shifa Medical Center Islamabad (SMCI) from all remaining shareholders.

The management shared that this project was initially launched in 2019. However, progress was disrupted by the COVID-19 pandemic, severe macroeconomic headwinds, and steep currency devaluation.

Initially, management was considering divesting from this venture. However, a turnaround in SHFA’s core operations over the past few quarters has led to a renewed focus on the project, as per the press release issued.

To recall, SHFA currently holds a 56% stake in SMCI, while Interloop Holdings owns 40%, and the remaining 3% is held by other minority shareholders.

The rationale behind acquiring full ownership is to achieve operational and administrative efficiency, streamline the group structure, and potentially benefit from tax advantages in the initial years, as the new facility is expected to post losses.

Located just 4 km from the main hospital, the facility is expected to significantly contribute to operational efficiencies.

The total acquisition cost is estimated at Rs1.7 billion, in addition to the Rs1.3bn already invested. The grey structure of the building is ready, comprising five floors & two basements and has received the necessary regulatory approvals.

The management further stated that given SHFA’s healthy balance sheet and stable to improving margin outlook, they are confident that the project will be fully funded through internal cash flows.

Commenting on the Faisalabad project, management stated that the project is going as per the timeline. To note, the project is expected to come online early next year.