Back to the complete issue
Tuesday, 10 November 2020

EBRD, CDC consortium acquire 99.6% of Egypt’s Adwia pharma

M&A WATCH- EBRD-CDC consortium acquires 99.6% of Adwia Pharma: A consortium of the European Bank for Reconstruction and Development, the UK’s Commonwealth Development Corporation, and an unnamed UK fund have acquired a 99.6% of pharma company Adwia, Al Mal reports, citing sources with knowledge of the sale. The USD 126 mn transaction buys out the 90% stake held by chairman Hossam Taher and his family as well as most of the 10% held by medical professionals. Minority shareholders holding 0.4% of the company’s equity could still participate in the transaction, the newspaper suggests.

Background: Adwia had previously rejected a USD 150 mn offer by UK private equity firm Development Partners International, saying the valuation was too low in light of increasing sales due to covid-19. The companies had reportedly reached an agreement for USD 200 mn in September, after which it became known that the EBRD and CDC were also interested in a stake. It’s entirely possible the unnamed UK investment fund referred to by Al Mal’s source is Development Partners International.

Advisors: EFG Hermes was reportedly buy-side advisor, while our friends at Pharos advised Adwia.

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.