Back to the complete issue
Thursday, 1 September 2022

Alex Medical taps advisors to assess the Tawasol Holdings-LimeVest consortium’s acquisition bid

Alex Medical taps advisors to weigh in on acquisition bid: Alexandria Medical Services has appointed Andersen as its financial advisor to study Tawasol Holdings and LimeVest’s bid to acquire up to 74% of the company, it said in an EGX disclosure (pdf) yesterday. The company also hired Helmy, Hamza and Partners (Baker McKenzie’s Cairo office) as legal counsel on the issue.

Refresher: The Financial Regulatory Authority (FRA) this week approved the consortium’s mandatory tender offer (MTO) to purchase up to 74% of Alexandria Medical Services for EGP 47.67 a share. This is an adjustment from the alliance’s last bid in June last year, which offered to purchase shares at EGP 52 apiece, because Alex Medical has since executed a capital increase, issuing 1.3 mn additional shares. This came 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.

WATCH THIS SPACE- Shareholders have until 27 September to respond to the MTO. Alex Medical’s board will release a statement clarifying what it thinks of the bid by 20 September, the disclosure said yesterday.

The word among analysts is that the offer price is “fair,” especially “considering the decline in profits that Alex Medical saw in 1H 2022,” Al Mal quotes Aly Adel, vice president at Beltone Financial, as saying. The company’s net income more than halved to EGP 11.01 mn during the six-month period, according to its latest financials (pdf).

Buy-side 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.

DID SOMEONE SAY MICRO ACQUISITION?

Rowad Tourism has upped its stake in ceramics manufacturer Lecico Egypt to 3.92% from 2.24% in an EGP 13.76 mn transaction at EGP 10.24 per share. (Disclosure, pdf)

EDITOR’S NOTE- This story was amended on 19 September, 2022 to clarify that Tawasol Holdings and LimeVest’s most recent offer for Alex Medical adjusts the price to account for the company’s capital increase, and is not a discount from its initial offer.

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.