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Monday, 8 July 2019

Actis gets approval to take over management of CHG’s majority shareholder

M&A WATCH- Actis gets regulatory approval to manage Cleopatra Hospital’s majority shareholder: EM private equity fund Actis received approval from the Financial Regulatory Authority (FRA) to take over the management of Creed Healthcare Holdco from now-defunct EM private equity giant Abraaj, Al Mal reported, citing unnamed sources. Creed Healthcare, also known as North Africa Hospital Holdings, owns a 69% stake in Cleopatra Hospital Group (CHG). The sources said that Actis’ takeover will not change the ownership structure of CHG.

No impact from ongoing criminal investigations into Abraaj officials: Actis was also given approval to manage another fund that was previously managed by Abraaj, sources said. The management change will not be impacted by ongoing investigations and court cases of previous Abraaj officials, the sources said.

Background: Abraaj was the largest EM private equity firm in the world before it collapsed last year amid concerns that funds were being misused. Executives Mustafa Abdel-Wadood and Arif Naqvi were arrested in April and released on bail the following month, and Abdel-Wadood pled guilty to racketeering and fraud charges earlier this month. Bloomberg reported last week that Actis received the support of 75% of investors, allowing it to take over the USD 1.6 bn Abraaj Private Equity Fund IV and the USD 990 mn Africa Fund III. Actis had reportedly made an offer last September to acquire “the bulk” of Abraaj’s EM funds.

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