Abraaj Group submits mandatory bid for Cairo Medical Center

The leading private equity firm Abraaj Group announced in a statement on Thursday it offered via one of its funds a mandatory tender offer for up to 100% of Egyptian healthcare firm Cairo Medical Center.
The Group added it already has pledges from shareholders owning 50.09% of the company to sell it their stocks.
No offer price for the tender offer was given in the statement from Abraaj, which is based in Dubai and focuses on emerging markets.
The mandatory tender offer is conditional to 51% of the total outstanding shares being tendered.
Abraaj plans to undertake a significant capital expenditure program at Cairo Medical Center with the objective of upgrading the medical facilities, installing state of the art equipment throughout the hospital and investing in staff training to ensure that the hospital delivers comprehensive, affordable and high quality medical services to patients.
Moreover, Abraaj has experience in the hospital sector, having invested in Acibadem, a leading healthcare group in Turkey. During Abraaj‟s four year investment in Acibadem, the business grew from six to 14 hospitals, increased bed capacity from 750 to over 1,850, and created approximately 5,000 jobs. Abraaj has also invested in the hospital sector in South Asia, South East Asia and Sub-Saharan Africa.
“Our investment in Cairo Medical Center fits our wider strategy of supporting resilient and critical industries such as healthcare, and helping to facilitate the provision of quality and affordable healthcare with a strong focus on upgrading facilities and medical technology to improve overall patient care standards,” said Ahmed Badreldin, Partner and Head of MENA at The Abraaj Group.
Angie Helmi, Director at The Abraaj Group, added: “We look forward to investing in Cairo Medical Centre, which we believe is a solid business with strong growth potential. Building on Abraaj‟s experience in the healthcare sector and by leveraging our global network, we are confident that we are best positioned to help better align the hospital’s offering with the increasing demand for medical services.”
Meanwhile, the Egyptian Financial Supervisory Authority (EFSA) said it approved a takeover bid received from Credit Healthcare Ltd for 2.7 million shares, or 100% of Cairo Medical Center at EGP 75 each, totaling EGP 202.5 million. The deal’s value may be paid in the US dollar as per the choice of every shareholder. On February 23, 2014, Cairo Medical Center had received a letter from Credit Healthcare, which included an initial plan to make a mandatory tender offer for up to 100% of the company’s shares.