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Tuesday, 2 March 2021

Prime Speed Medical Services reduces target stake in Al Safwa

Prime Speed Medical is scaling back the stake it plans to acquire in New Al Safwa Specialized Hospital to 4.4% from 10%, it said in a regulatory filing (pdf), putting the transaction at a value of EGP 8.4 mn instead of the previously announced EGP 15.5 mn. The decision came after not enough of Al Safwa shareholders agreed to sell their stakes to Prime Speed, the disclosure said. Prime Speed was looking to acquire shares in Al Safwa through Speed Hospitals — a subsidiary of Speed Medical (SPMD), Prime’s sister company. Speed Hospital itself wants at least 50% plus one share of Al Safwa along with management rights.

Untangling the whole Speed, Prime Speed ownership: Separately, Prime Speed Medical’s three major shareholders — Prime Egypt Group chairman Tamer Waguih, and Prime Speed Medical board members Ayman Sabry and Mahmoud Farrag — said they would prefer a share swap transaction for their upcoming merger with SPMDl, Waguih reportedly told Al Mal. The three are apparently looking to swap their entire stakes in Prime Speed, which amount to 70% of the company, with SPMD shares. SPMD’s board of directors approved last month buying a 100% stake in Prime Speed Medical, up from a current 30% stake. SPMD had set up Prime Speed Medical Services last year along with other shareholders including Waguih. Zaki Hashem & Partners will manage the transaction.

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