Another Deal in the Egyptian Healthcare Market in progress
Cleopatra Hospitals Group announced that it has applied to obtain the approval of the Financial Regulatory Authority to publish an announcement of a compulsory purchase offer to acquire 100% of the shares of the Alexandria Medical Services Company (New Medical Center – Alexandria).
The company indicated in a statement last Monday, that the offer is at a price of 38.53 Egyptian pounds per share, in light of the advisors of Abu Dhabi Commercial Bank (the 51.5% shareholder in the capital of Alexandria Medical Services Company) managing the bank’s exit, which the bank disclosed during the month of March 2021.
The group added that it had submitted a non-binding offer, obtained negative examination reports of ignorance prepared by the bank’s advisors, and had discussed this with the management of Alexandria Medical Services Company.
The medical center is the largest private hospital in terms of clinical capacity in Alexandria, North and West Delta, with 300 beds, in addition to many leading departments at the level of the region, such as the liver transplant unit, which is the only one in the north and west of the delta, the oncology unit, and the kidney transplant unit.
Cleopatra said that she will work closely with the doctors and staff of the new medical center to develop the healthcare service through highly trained healthcare providers, high-quality facilities, and the latest medical technology.
Through this acquisition, Cleopatra aims to increase and enhance the volume of the new medical center’s business within the framework of the Group’s keenness to invest in improving the quality of care, providing medical care at the highest level, and institutionalizing healthcare in Egypt, supported by governance policies, business transparency and the financial resources available to the group because of the unused public expenditures and the value of earnings before interest, taxes, depreciation, and EBITDA last year alone amounted to more than 530 million Egyptian pounds and more than 500 million Egyptian pounds in cash in the combined budget, in addition to the absence of any debts.
The company explained that the purchase will be funded from the self-resources of the Cleopatra Hospital Company, in addition to part of the cash financing from Ahli United Bank – Egypt.
For his part, Dr. Ahmed Ezz El-Din, CEO and Managing Director of Cleopatra Hospitals Group, said that this step is a strong addition in line with the strategy of the Cleopatra Hospitals Group to provide high-quality medical services to all Egyptians and in various regions and cities outside Cairo, which is witnessing an increase in demand and a shortage of supply according to the needs of the market.
Ezz El-Din emphasized that Alexandria governorate is one of the geographical areas targeted for its expansion strategy as it is the second-largest governorate in Egypt, with the high demand for high-quality medical services and the shortage of beds, on the same approach that it took for its hospitals in Cairo and Giza, the Cleopatra Hospitals Group intends to continue investing in developing Alexandria’s largest hospital, providing new medical services and technology at the latest level, and transferring knowledge by linking best healthcare practices between Cairo and Alexandria.
It is worth noting that Cleopatra Hospitals Group – an Egyptian joint stock company – works in the healthcare field and Care Health Care LTD owns 37.9% of its capital, which is owned by a group of major investors and international development financial institutions, including the European Bank for Reconstruction and Development (EBRD), and the German Development finance institution (DEG) and the French Development finance institution Proparco.