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Tuesday, 20 September 2022

Another bidder is back for Alex Medical

Yas Holding relaunches its bid to acquire Alex Medical: The UAE’s Yas Holding (formerly known as Emirates Advanced Investments) appears to be reentering the bidding war for Alexandria Medical Services. The company has upped the per-share price of the offer it made for a majority stake in Alex Medical last year by some 10.5% to EGP 48.62 per share, the Financial Regulatory Authority (FRA) said in a statement (pdf) to the EGX yesterday. The offer values Alex Medical at some EGP 757 mn by our math — and comes in some 2% higher than the mandatory tender offer for Alex Medical currently in play from the Tawasol Holdings-LimeVest consortium.

REMEMBER- We’re expecting Alex Medical’s board to say what it thinks of another acquisition offer today. The Tawasol-LimeVest consortium is offering EGP 47.67 a share as it looks to purchase up to 74% of Alex Medical, relaunching its bid from last year at the same valuation, with an adjustment in the pre-share price to account for the capital increase the healthcare provider made in the interim. Tawasol already owns 26% of Alex Medical, meaning the acquisition could give the consortium 100% ownership. Alex Medical’s board has said it will share its view on the consortium’s offer today, after appointing Andersen as its financial advisor to study the bid. Alex Medical’s shareholders have until 27 September to weigh in.

Will Tawasol-LimeVest up its offer? The Tawasol-LimeVest consortium is still deciding how to respond to the amended offer from Yas, a source close to the transaction tells Enterprise. The Yas offer is pending healthcare-sector specific approvals and the greenlight from the FRA, according to the regulator’s statement.

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.

Advisors: Al Ahly Pharos is reportedly Yas’ financial advisor on the transaction, according to sources quoted by Hapi Journal at the time the offer was launched. Prime Holding are the brokers on the Tawasol-Limevest offer and Zaki Hashem and Partners are acting the consortium’s legal advisors.

In context: Yas and the Tawasol-LimeVest consortium had both put in offers for Alex Medical 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.

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