Back to the complete issue
Tuesday, 18 August 2020

Cleopatra Hospital Group, Speed Medical deny they’re pursuing Alex Medical

M&A WATCH- Speed Medical, Cleopatra Hospital Group deny interest in Alex Medical: Speed Medical and Cleopatra Hospital Group (CHG) and Alexandria Medical Services yesterday denied (here and here — pdfs) reports that they are looking to buy embattled Indian bn’aire BR Shetty’s majority stake in Alexandria Medical. Al Mal earlier in the day reported that the two were among a group of investors looking to acquire Shetty’s 87.6% stake in the company, citing unnamed sources in the healthcare industry. Alexandria Medical Services also denied having knowledge (pdf) of any intent by Speed Medical and CHG to acquire the stake.

Abu Dhabi Commercial Bank was said to be involved in the talks. The sources claimed that NMC’s largest creditor Abu Dhabi Commercial Bank was in talks with potential bidders for the Alex Medical stake. The Emirati bank led an appeal at a UK court to place NMC into administration at the beginning of April, and had its application granted to appoint Alvarez & Marsal as administrators.

Why does BR Shetty’s name sound familiar to you? Alex Medical’s majority shareholder BR Shetty resigned as the company’s chairman earlier this year following allegations of fraud at his London Stock Exchange-listed Emirati health firm NMC Health and fintech startup Finablr. Once the largest healthcare firm in the UAE, NMC entered administration in April after an investigation revealed bns of USD in unreported debt. The company began selling off assets in May to raise funds to repay its creditors.

Alex Medical distanced itself from Shetty as the scandal unfolded and reassured investors that the company’s finances will not be affected by NMC’s insolvency.

In related news: Shetty has stepped down as co-chairman of Finablr and has left the company’s board, Reuters reports.

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 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; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.