Speed Medical announced that it had paid New Al Safwa Specialized Hospital’s shareholders EGP 4 mn in June as part of compensation for the months delay on the transaction, the company said in a bourse filing (pdf). The company said it had paid the amount to a representative of the sellers to secure their agreement to extend the terms of the transaction, which is being held up by a delay in obtaining health ministry approvals.

The company also confirmed that it would be upping its initial EGP 185 mn offer by an amount equivalent to the interest rate on the 185 mn figure during the period from 1 March until the transaction is complete, after sellers voiced complaints about the slowness of the regulatory approvals from the ministry.

Speed Medical’s subsidiary Speed Hospitals wants at least 51% of Al Safwa, as well as management rights, with the rest of the equity to be owned by other investors including a 4.4% stake for sister company Prime Speed Medical Services.

Speed Hospitals already has post-acquisition plans including raising Al Safwa Hospital’s capacity to 150 beds from its current 67. Speed Medical is also looking to list its hospitals arm on the EGX sometime within the coming three years.

Speed Medical has been facing heat recently: Yesterday, the company was fined EGP 200k by the IPO Committee for once again violating article 34 of the EGX’s rules for listing, which states that any company listed on the market has to disclose any essential information with the EGX, which will then share said information on its trading screens and official website. The company also threatened legal action against any media outlet that shares allegations made by unnamed shareholders, who accused the company of market manipulation.