CI Capital’s Cleopatra bid gets regulatory approval
CI Capital’s bid to acquire 26.2% of Cleopatra Hospitals Group has received the greenlight from the Financial Regulatory Authority (FRA), the regulator said in a statement (pdf) to the EGX on Thursday. MCI Capital Healthcare Partners, the CI Capital subsidiary that’s executing the acquisition, submitted a voluntary tender offer last week to purchase the shares at EGP 5 apiece, valuing the company at EGP 8 bn.
The fair value of the company has not been assessed by an independent financial advisor, a source familiar with the matter told Enterprise. MCI’s offer is slightly higher than the company’s current share price, which eased 1% to EGP 4.65 on Thursday, according to market data.
The company’s biggest shareholder also gave a nod of approval: Creed Healthcare, which owns 37.9% of CHG through its subsidiary Care Healthcare, has agreed to sell an 8-12% stake in the company from its holdings (126 mn-192 mn shares). MCI will likely acquire the rest of the shares through the EGX.
The acquisition bid comes on the back of strong 2021 earnings for the healthcare company, which reported 58% y-o-y growth in net income during the first nine months of the year on the back of a 38% y-o-y rise in revenues.
BACKGROUND: CHG has been eyeing geographical expansion across Cairo: The EGX-listed healthcare company — one of the two largest in the private sector — recently purchased a brownfield project in East Cairo to develop into a 400-bed medical facility. CHG recently sought to expand its footprint through a mega-merger with private healthcare group Alameda, but the transaction fell through earlier this year. Cleopatra also acquired a 60% stake in Bedaya Hospital last year.
ADVISORS: Zulficar & Partners is acting as legal advisor to MCI Capital.