The Abraaj group, a leading global private equity investor, has made a legal tender to purchase a 100 percent stake of Egyptian Stock Exchange (EGX)-listed Cairo Medical Center (CMC) through one of its funds.
The company says it has submitted a mandatory tender offer to acquire the business.
Abraaj has already acquired 50.09 percent of CMC from its shareholders through irrevocable sale undertakings. It intends to buy the outstanding shares for 75 Egyptian pounds a share – valuing the business at 202.5 million pounds ($28.3 million).
By purchasing Cairo Medical Center, a leading comprehensive tertiary care private hospital in East Cairo, Abraaj intends to upgrade the hospital facilities by installing state of the art equipment while making substantial investment in staff training to meet the increasing demand for quality healthcare on the continent.
The announcement to buy CMC – the first private sector hospital built in Egypt – came following a similar acquisition of a stake in Cira, the largest K-12 private schools group in Egypt with more than 17 owned and operated schools.
Abraaj is seeking to gain head-way in the Egyptian business landscape, which is gradually seeing investment pick up following a period of economic uncertainty after the country suffered economy and security collapse in the last three years due to political turmoil.
The Middle-Eastern firm has made several investment in the healthcare across global markets including South Asia, South East Asia and Sub-Saharan Africa continents.
In 2010, it bought 50 percent of Acibadem, a leading healthcare group in Turkey whose business has grown stupendously in the last four years while creating at least 5,000 jobs.
Partner and Head of MENA at The Abraaj Group, Ahmed Badreldin said the company’s investment in the facility is part of its “wider strategy of supporting resilient and critical industries such as healthcare, and helping to facilitate the provision of quality and affordable healthcare.”
“We are confident that we are best positioned to help better align the hospital’s offering with the increasing demand for medical services,” Angie Helmi, Director at The Abraaj Group added.
