Abraaj Submits Tender Offer to Acquire Cairo Medical CenterArif Sharif
The Abraaj Group, the Middle East’s biggest private equity company, submitted a mandatory tender offer to acquire all the shares in the Cairo Medical Center SAE.
The offer for the hospital group is conditional on 51 percent of the outstanding shares being tendered, Dubai-based Abraaj said in an e-mailed statement today. The company, which manages about $7.5 billion, has so far obtained “irrevocable sale undertakings from shareholders owning 50.09 percent” of the company’s equity, it said.
Cairo Medical Center, which has a market value of 206.5 million Egyptian pounds ($29 million), is a tertiary care facility with 177 beds located in east Cairo, according to today’s statement. Abraaj said it plans “significant” investment to upgrade facilities and staff training to improve service quality.
Abraaj, founded in 2002, has been an investor in the health-care industry and in 2012 sold its 50 percent stake in Turkey’s biggest hospital chain, Acibadem Saglik Yatirimlari Holding AS. The business grew from 6 to 14 hospitals and increased bed capacity to over 1,850 from 750 in the four years Abraaj was invested in the company, according to today’s statement.
Egypt’s former army chief Abdel-Fattah El-Sisi, who was sworn in as president this month, has vowed to fix an economy in its worst slump in about 20 years as a result of the political uncertainty sparked by the Arab Spring.