(Adds comment from Alvarez & Marsal, paragraph 5)
By Hadeel Al Sayegh
DUBAI, June 30 (Reuters) - The administrators of hospital operator NMC Health have selected Perella Weinberg Partners to advise on the sale of its international fertility business, two sources familiar with the matter said on Monday.
NMC bought a controlling stake in Spain-based fertility business Clínica Eugin in 2015 for an enterprise value of 143 million euros ($161 million). It also has operations in Italy, Portugal, Sweden, Brazil and Columbia.
NMC administrators Alvarez & Marsal have hired Perella Weinberg Partners, said the two sources, who declining to be identified as the matter is not public, in a deal that could be worth more that $500 million.
Perella Weinberg Partners was not immediately available to comment when contacted by Reuters.
Alvarez & Marsal, in a statement on Tuesday, said “no decision has been made to sell NMC Health’s international fertility business. All options are being explored at this point and this process is ongoing.”
NMC, founded by Indian entrepreneur B.R. Shetty, is the largest private sector healthcare provider in the UAE.
Eugin’s IVF business generates earnings before interest, taxation, depreciation and amortisation (EBITDA) of between $70 million and $90 million, a source told Reuters this month.
A second source said the business is worth more than $500 million, based on a 10-15 multiple of EBITDA.
NMC, once a member of London’s FTSE 100 index, was placed into administration in April after months of turmoil which followed questions about its financial statements from short-seller Muddy Waters.
NMC, which has borrowed from a total of 80 local and international banks, revealed $4 billion in undisclosed debt resulting in the removal of top executives at the firm. (Reporting by Hadeel Al Sayegh, additional reporting by Saeed Azhar; editing by Jason Neely)