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Tuesday, 13 April 2021

It’s official: CHG wants Alex Medical

Cleopatra Hospitals has confirmed it’s in the race for a stake in Alex Medical: EGX-listed Cleopatra Hospitals Group (CHG) has submitted a non-binding letter of intent to acquire Abu Dhabi Commercial Bank’s (ADCB) 51.5% stake in Alexandria Medical Services, it said in a regulatory filing (pdf) this morning. CHG submitted the letter to CI Capital, Alex Medical’s advisor, and is currently negotiating terms. The announcement confirms a press report earlier this week that CHG is the latest to show interest in acquiring a majority stake in the healthcare provider.

Who else is in the running? A consortium of Speed Medical, Saudi’s Tawasol Holdings (already a 26% shareholder in Alex Medical), and Sharif El Akhdar’s LimeVest has already made an offer this week. A rival group including Mabaret Al Asafra and investment firm Tana Africa Capital is interested.

How much could the transaction be worth? An offer on the table from the Mabaret Al Asafra / Tana consortium values Alex Medical — which operates the Alexandria New Medical Center large hospital building — at nearly EGP 650 mn, Al Mal reported, citing unnamed sources.

Advisors: EFG Hermes is acting as CHG’s financial advisor, while Arqaam Capital is advising the Mabaret Al Asafra-Tana consortium. Zilla Capital is advising Mabaret Al Asafra’s shareholders. Prime Capital is advising the Tawasol-Speed Medical consortium. CI Capital is sell-side advisor.

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