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Sunday, 14 July 2019

Care Healthcare divests 31.5% stake in Cleopatra Hospitals

M&A WATCH- Care Healthcare divests 31.5% stake in Cleopatra Hospitals: Care Healthcare sold a 31.5% stake in Cleopatra Hospital Group on Wednesday, Cleopatra said in a bourse filing on Thursday (pdf). Care Healthcare, which prior to the transaction held a commanding 69.4% stake in Cleopatra, sold 503 mn shares at EGP 5.2 a share in a transaction worth EGP 2.6 bn — bringing Care’s ownership stake in Cleopatra down to 37.9%. Creed Healthcare, Care Healthcare’s parent company, intends to retain a controlling stake in Cleopatra after the transaction, EFG Hermes, which advised on the transaction told Bloomberg. Cleopatra’s shares, which have been up 29% YTD, rose 8.1% on Thursday.

An Actis connection? The sale comes days after local news reported that the Financial Regulatory Authority has given EM private equity fund Actis its approval to take over the management of APEF IV private equity fund from the now defunct Abraaj. APEF IV owns a 42.5% stake in Creed Healthcare. Actis did not comment on the news, while Cleopatra Hospitals put out a statement stating it has no knowledge of a change in management at Creed.

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