Waha Capital PJSC, the Abu Dhabi investor that owns a stake in plane leasing company Aercap Holdings NV, plans to spend as much as 200 million dirhams ($54 million) on health care assets in the United Arab Emirates.
“Mandatory health insurance, which has already kicked in in Abu Dhabi, we think will kick in in the northern emirates sometime over the next 24 months,” Michael Raynes, Waha’s chief operating officer, said today in an interview. “In Abu Dhabi, more people went to clinics because they were insured and clinics charged more for their services because insurance companies were effectively paying the bill.”
Waha Capital, which had about 4.4 billion dirhams of assets as of March 31, had first-quarter net income of 85.3 million dirhams, a more than five-fold jump from the previous year because of increased revenues from Aercap, U.A.E. consumer finance company Dunia Finance and the company’s advisory business, according to a company statement released today.
The firm would spend several hundred million dirhams more developing any health care service assets it may purchase this year, Raynes said. Waha has over 100 million dirhams in cash, a few hundred million dirhams in unused credit facilities, and shareholder approval to issue a 1 billion dirham mandatory convertible note, he said.
“We’re very much focusing on making new investments,” Raynes said at his office in Abu Dhabi. “We see a huge up tick in the U.A.E. over the next five to seven years. Health care is definitely one of the sectors and we also like education.”
Waha acquired an initial 20 percent stake in Aercap in a 2010 transaction valued at $380 million. The firm now has a 26.3 percent stake valued at $492.2 million, according to the $16.51 closing share price of New York-listed Aercap on May 10.
Mubadala Development Company PJSC, an Abu Dhabi sovereign investment company, owns a 15.4 percent stake in Waha Capital, according to Bloomberg data.