(Adds detail, context)
DUBAI, June 19 Emerging market-focused private
equity firm Abraaj Group aims to complete a takeover of Egyptian
healthcare firm Cairo Medical Center after announcing
plans for a tender offer to shareholders.
The transaction is one of a number of mergers and
acquisitions deals underway in Egypt, which is showing signs of
renewed life after three years of inactivity due to political
Abraaj had said in February that Creed Healthcare Ltd, a
firm owned by one of its funds, had agreed to buy 41.98 percent
of the 177-bed hospital in east Cairo for 75 Egyptian pounds a
share - valuing the business at 202.5 million pounds ($28.3
Such a move, under Egyptian market rules, means the buyer
must make an offer to all shareholders, and this was formally
announced on Thursday by Abraaj, which said it now had sale
pledges from shareholders with 50.09 percent of the company.
No price for the tender offer was given in the statement.
Shares in Cairo Medical Center, which trade infrequently, last
traded early this month at 76.47 pounds, an all-time high.
For the tender offer to succeed, 51 percent of Cairo Medical
Center's shares must be tendered by shareholders. Given the
commitments already secured, Abraaj looks likely to meet that
Abraaj said it planned a capital expenditure programme which
would upgrade the medical facilities, install new equipment and
invest in staff training.
"Our investment in Cairo Medical Center fits our wider
strategy of supporting resilient and critical industries such as
healthcare," said Ahmed Badreldin, partner and head of Middle
East and North Africa at Abraaj.
Abraaj, which has around $7.5 billion of assets under
management, has investments in hospitals in south Asia,
southeast Asia and sub-Saharan Africa, it said.
($1 = 7.1501 Egyptian Pounds)
(Reporting by David French; Editing by Andrew Torchia)