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Tuesday, 20 April 2021

It’s official: 4 investors are in the bidding war for Alex Medical

Healthcare investment firm Seha Capital is the latest to throw its hat in the ring for Alexandria Medical Services as Abu Dhabi Commercial Bank(ADCB) looks to offload its 51.54% stake, Alex Medical said in an EGX disclosure (pdf).

The company is now officially being courted by four bidders: EGX-listed Cleopatra Hospitals Group (CHG), Alexandria for Medical Investment Company (the majority shareholder of Mabaret Al Asafra Hospitals Group in which South Africa’s Tana Capital holds a minority stake), a consortium of Speed Medical, Sharif El Akhdar’s LimeVest and Saudi’s Tawasol Holdings (already a 26% shareholder in Alex Medical), as well as Seha.

Investors offered an average price of EGP 50.77 per share, according to the disclosure, with sell-side advisor, CI Capital saying it had received non-binding letters of intent from the four bidders.

Final binding offers are expected to be submitted to CI Capital by the third week of May, after bidders wrap up due diligence. The closing date will soon be determined by ADCB, who will be exiting the company.

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

Background: Reports in the local press last month suggested that an offer is on the table from the Mabaret Al Asafra-Tana consortium that values Alex Medical at nearly EGP 650 mn. The Tawasol-Speed Medical-LimeVest consortium had also reportedly made an offer earlier this month of EGP 38.09 apiece.

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