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.