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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.

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