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Sunday, 28 February 2021

Bidding war for Alex Medical heats up…

Speed Medical could partner with Tawasol for Alex Medical acquisition bid: Tawasol Holdings appears to be exploring teaming up with Speed Hospitals Company — a subsidiary of Speed Medical — on its potential acquisition of 100% of Alexandria Medical Services, Al Mal reports, quoting sources close to Speed Medical. The two could potentially form a consortium with an unnamed local healthcare investor, sources added. Talks are currently underway to determine how the three will distribute Alex Medical’s shares following the acquisition, the sources said. A formal offer could be lodged in as early as this week, they added.

Speed Medical confirmed that it is in talks with Tawasol, but as of yet, “nothing has been signed,” the company said in a regulatory filing to the EGX (pdf). Any partnership with Tawasol will be done through Saudi Treatment Group — an “affiliate” of Tawasol, the statement said. The specifics and nature of this affiliation are unclear. We reached out to Tawasol’s financial advisor on the transaction, Prime Capital, but it wasn’t available for a comment as of dispatch time.

Background: Tawasol already holds a 25.9% stake in Alex Medical. It announced earlier this month it’s looking to purchase the 74.1% it doesn’t already own in the EGX-listed hospitals operator. Of the 74.1% stake, 51.5% is held by Abu Dhabi Commercial Bank (ADCB), which became Alex Medical’s majority shareholder following the collapse of BR Shetty’s UAE-based NMC Healthcare on allegations of fraud. The remaining stake belongs to Egyptian-British entrepreneur Tamer Abdullah, who was reported in December to be looking at a stake increase himself, and the rest is in freefloat on the stock exchange.

Alex Medical also looks to be fielding a competing offer, which ADCB received from a consortium of Mabaret Al Asafra Hospitals and investment firm Tana Africa Capital in January.

Who’s Alex Medical? It operates the Alexandria New Medical Center, which serves over 300k patients a year (pdf), many of whom come from nearby governorates with large rural areas.

IN OTHER M&A NEWS- ADQ Holding’s Agthia to wrap up due diligence on Atyab next month: Emirati state-owned investment firm ADQ Holding’s food subsidiary Agthia plans to wrap up in March due diligence ahead of its acquisition of Atyab brand owner Ismailia Agricultural and Industrial Investments, according to a local press report quoting sources close to the transaction. The acquisition is expected to be completed no later than the end of the first half of 2021, the sources said. Agthia, which is 51% owned by ADQ, will be looking to acquire at least 75% of the Egyptian meat and poultry company, in a takeover that could be valued at EGP 3 – 3.2 bn, we noted last October.

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