The Cleopatra Hospital Group has filed for regulatory approval to make a mandatory tender offer (MTO) for 100% of the Alexandria Medical Services – Alexandria New Medical Center’s (ANMC) outstanding shares.
The group is seeking approval from Egypt’s Financial Regulatory Authority (FRA) to offer ANMC shareholders EGP 38.53 per share, valuing 100% of ANMC at about EGP 550m.
This comes in line with the process that was initiated by advisors from the Abu Dhabi Commercial Bank (ADCB), which holds a 51.5% stake in ANMC, in March 2021.
Cleopatra Hospital participated in this by submitting a non-binding offer, receiving the vendor due diligence reports and holding calls with the ANMC management team.
ANMC, which boasts a 300-bed capacity, is one of the leading private hospitals in Alexandria, and offers tertiary medical services.
Cleopatra Hospital has the financial resources to execute on its investment strategy, with a strong, unleveraged balance sheet. It has a reported EGP 500m in cash balances, with last year’s EBITDA alone amounting to over EGP 530m, alongside double digit year-on-year (y-o-y) growth.
The proposed acquisition of ANMC will be funded through the group’s own cash balances and existing undrawn debt facilities, with excess lines arranged by Ahli United Bank – Egypt.
The group will also continue to invest in developing its existing hospitals network and seize new acquisition opportunities in the healthcare sector. This is set to take place as part of its expansion plans, along with an actionable pipeline of potential opportunities.
Commenting on the new deal, Cleopatra Hospital CEO Ahmed Ezzeldin said that ANMC is a strategic acquisition. It comes as part of the Group’s expansion plan and strategy to develop and provide high-quality medical services to Egyptians nationwide.
The group targets cities and facilities that address a clear supply-demand gap, the potential to offer new services and grow the existing business.
Ezzeldin added that the Cleopatra Hospital has expanded its reach outside Greater Cairo and targeted Alexandria for its expansion strategy as the second largest governorate in Egypt. This comes alongside the increasing demand for high-quality medical services and shortage in bed capacity.
Similar to the approach it took in Cairo and Giza, Cleopatra Hospital intends to continue; investing in developing Alexandria’s largest hospital; providing state of the art medical services and technology; growing bed capacity in the city; and transferring knowledge by linking best healthcare practices between Cairo and Alexandria.
Cleopatra Hospital has appointed EFG Hermes as the financial advisor for the transaction, and MHR & Partners in association with White & Case LLP as the legal advisors