Back to the complete issue
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 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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.