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Tuesday, 12 May 2020

CDC targeting Alfa Medical with USD 150 mn investment

INVESTMENT WATCH- CDC is looking at a USD 150 mn investment in labs and healthcare player Alfa -report. The UK’s CDC Group is looking at an investment of as much as USD 150 mn to acquire a minority stake in Alfa Medical Group, according to a report in Al Mal that cites Alfa Managing Director Adel Talaat. Talks are ongoing, and Taalat declined to get into specifics; a report earlier this week had put the value of the investment at USD 100 mn. Alfa also has interest from other parties eyeing minority stakes, the newspaper says. Reports in the domestic press had previously said that a transaction could close in the next few weeks.

CLARIFICATION- In our coverage of this story yesterday, we noted CDC’s past track record of investing in Egypt. Its investments in companies including snackfood giant Edita and leading labs group IDH, among others, were not made directly, but via funds managed by our friends at emerging markets private equity firm Actis. CDC has made 22 direct and indirect investments in Egypt, having also provided tier-2 capital to banks including CIB and made commitments to a venture capital fund managed by Sawari Ventures and a small- and midcap fund managed by Ezdehar.

Advisors: Matouk Bassiouny is CDC Group’s legal counsel, while Al Kamel Law Office and Serry Law Office are advising Alfa.

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