Egypt’s Cleopatra Hospital enters into conditional agreement to acquire Alameda Health

Cleopatra Hospital Group, Egypt’s biggest private hospital operator by number of beds, announced on Sunday that it had signed a conditional agreement to acquire Alameda Healthcare Group’s assets in the country.

This will be one of Africa’s largest health-care transactions this year.

According to a filling the company sent to the Egyptian stock exchange (EGX) on Sunday, Cleopatra said it expects to complete the deal within the first half of 2021.

The deal is set to combine two of Egypt’s biggest private medical providers at a time when the coronavirus pandemic has raised the importance of specialised care.

Cleopatra explained that it plans to partially fund the purchase by issuing convertible loan notes to Alameda controlling shareholder Fahad Khater.

Khater, Alameda’s founder, is set to become the second-largest shareholder in the combined group with an expected stake of about 25 percent after the transaction, the person further told Bloomberg.

The transaction could value Alameda at about $450 million to $500 million including debt, a source familiar with the matter told Bloomberg earlier, asking not to be identified because the information is private.

Cleopatra, which has a market value of about $458 million, has grown through acquisitions since its inception in 2014. The company currently operates six hospitals with nearly 800 beds in total, according to its website.

Meanwhile, Alameda’s network includes tertiary care hospitals in Cairo, as well as diagnostic centres, outpatient clinics, and specialist care facilities.