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Wednesday, 31 August 2022

Could the Alex Medical acquisition finally go through?

Alex Medical is back in play: The Financial Regulatory Authority (FRA) has approved a mandatory tender offer (MTO) from the Tawasol Holdings-LimeVest consortium to purchase up to 74% of Alexandria Medical Services, bringing back to life a play for the healthcare provider that we’d heard nothing on since last summer. We reached out to bookrunner Prime Holding yesterday, but hadn’t heard back by the time of dispatch this morning.

Throwback: The Tawasol-LimeVest alliance’s last offer for Alex Medical came in June last year, amid a bidding war for the healthcare provider that at its peak saw eight companies and consortiums signal their interest before it fizzled out without a sale. Cleopatra Hospitals Group, the UAE’s Global One Healthcare, Nile Misr, Seha Capital, and the Tawasol Holdings-LimeVest consortium never publicly counted themselves out of the running.

The offer: The consortium offered to pay EGP 47.67 a share for the stake, valuing Alex Medical at EGP 742.4 mn, according to a statement (pdf) filed to the FRA on Monday. The consortium’s offer last year valued the company at the same amount (without adjusting for inflation), though the per-share price was higher — EGP 52 per share — because Alex Medical has since executed a capital increase, issuing 1.3 mn additional shares, the statement reads. Tawasol already owns 26% of Alex Medical, meaning the acquisition could give the consortium 100% ownership.

Who’s selling? Abu Dhabi Commercial Bank (ADCB) wants to sell its 51.5% stake in the company that it acquired from NMC Healthcare’s disgraced founder, BR Shetty. Another 9.8% is owned by an individual shareholder.

What’s next? With the mandatory tender offer approved by the regulator, shareholders now have 20 working days — until 27 September — to weigh in.

Advisors: Prime Holding are the brokers on the offer and Zaki Hashem and Partners are acting as legal advisors for Tawasol Holdings-LimeVest on the transaction.

HELIOPOLIS HOUSING PARENT UPS STAKE IN MAADI DEVELOPER-

Heliopolis Housing parent company Holding Company for Construction and Development (HCCD) purchased 14.4% of Zahraa El Maadi Investment from Maadi for Development and Construction in a EGP 343.9 mn transaction, according to bourse disclosures (here, pdf and here, pdf). HCCD now owns 22.7% of Zahraa El Maadi, after purchasing an 8.3% stake last week.

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