M&A WATCH- UK-based fund enters talks to acquire Euro Mena II’s majority stake in International Eye Hospital: An unnamed UK-based fund is in talks with the Euro Mena II private equity fund to acquire its 51% stake in Egyptian healthcare chain International Eye Hospital, according to unnamed sources speaking with the local press. The report suggests due diligence is yet to take place.

Euro Mena I, II, and III are separate funds owned by a Lebanese private equity firm, EuroMena Funds.

Why is it selling? The regional PE firm announced in 2017 a plan to exit investments in three Egyptian companies owned by Euro Mena I. The plan was reportedly part of a strategy to shift its focus to Lebanon, as well as to Africa-based companies with ties to the Lebanese diaspora.

Background: The local press reported in March that US private equity firm TPG was considering making a bid for the International Eye Hospital. Euro Mena II has reportedly rejected two informal offers: one from private equity fund Ezdehar Management and another from a group of physicians who are also shareholders in the target hospital. Euro Mena II tapped global advisory firm Lazard last year as financial advisor and Matouk Bassiouny as legal counsel on the potential transaction.