Back to the complete issue
Thursday, 11 June 2020

Speed Medical will acquire City Labs in the coming months

M&A WATCH- Speed Medical (SPMD) is set to acquire 100% of City Labs in the coming months once SPMD completes a EGP 220 mn capital increase and completes due diligence on City Lab, according to Hapi Journal. The two had already set up a joint venture, CitySpeed, in 2018. The JV is responsible for operations and management of 23 medical labs in Port Said, Port Fouad, Suez, Ismailia, Damietta, Mansoura and Mahalla.

SPMD’s capital increase also paves the way for the company to become EGX-listed: The company has had its eye on two capital increases since late last year to help it move from the small-cap NileX to the EGX. The planned EGP 220 mn capital increase will qualify the company for listing on the main market, according to Hapi Journal. SPMD is using the capital increase to purchase an 800 sqm plot of land adjacent to its Al-Obour medical facility on the Ismailia Desert Road, while the remainder will be directed towards expanding the facility and its network of analysis labs. The Egyptian healthcare company announced last year plans to invest EGP 160 mn in 30 labs and outpatient clinics over the course of 2020.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.