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Tuesday, 19 June 2018

Cleopatra says Abraaj owns less than 5%, confirms it is still on hunt for acquisitions

Cleopatra Hospitals Group has put out a statement reassuring investors that troubles at Abraaj won’t impact the nation’s largest private-sector hospital group. Abraaj’s stake in Cleopatra is in the single digits, it said. “Abraaj Capital does not own any direct stake and indirectly owns less than 5% of Cleopatra through its investment as a limited partner in the private equity funds it manages,” the company said in a statement on Thursday (pdf). The statement notes that private equity funds managed by Abraaj, together with development finance institutions, own a combined c.69% of Cleopatra.

Meanwhile, Cleo is still on the hunt for acquisition targets, the company said in a bourse filing on Thursday (pdf). Among the companies Cleopatra is considering is El Katib Hospital in Dokki, the firm added. Cleopatra noted, however, that it has yet to take any actionable steps to acquire a hospital, including seeking regulatory approval. The statement in response to what the company said was an erroneous reports in Al Mal that claimed Cleo was close to completing an acquisition. The statement also came a day after the Financial Regulatory Authority blocked (pdf) its attempted acquisition of El Nozha International Hospital.

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