Faber

Following the announcement of the non-renewal of two of Faber’s UAE contracts, the price plunged by 23% and has since maintained at this level. It is believed that all the negative news from the non-renewal of UAE contracts has been priced in. As such, Faber will now refocus on managing its 12 hospitals and clinics in the UAE while at the same time expanding to military hospitals there. Faber’s 15-year concession to provide hospital support services in government hospitals is expiring in October 2011 and the company is currently awaiting approvals from the Ministry of Health and the Economic Planning Unit. The risk of losing the government concession is relatively small.