The emerging market-focused private equity firm Abraaj Group is zeroing in on Egyptian companies in a big way.
Yesterday it announced plans to acquire a stake in the education group Cira and complete a take-over of the healthcare company Cairo Medical Center.
The transactions are among several mergers and acquisitions deals under way in Egypt, which is showing signs of renewed life after three years of inactivity because of political turmoil.
Abraaj said it planned to submit a tender offer to acquire, through one of its funds, a stake in Cairo Investment and Real Estate Development, which is listed on the Egyptian Stock Exchange. Abraaj did not provide a price for the offer.
Cira is the largest K-12 private schools group in Egypt, with more than 17 owned and operated schools. The schools offer the English language national curriculum as well as the American, French and German systems. Cira also plans to expand its school offering across the country.
Abraaj said that it also aims to complete a takeover of Cairo Medical Center after announcing plans for a tender offer to shareholders.
Abraaj had said in February that Creed Healthcare, a company owned by one of its funds, had agreed to buy 41.98 per cent of the 177-bed hospital in east Cairo for 75 Egyptian pounds a share – valuing the business at 202.5 million pounds (Dh104m).
Such a move, under Egyptian market rules, means the buyer must make an offer to all shareholders, and this was formally announced yesterday by Abraaj, which said it now had sale pledges from shareholders with 50.09 per cent of the company.
No price for the tender offer was given. 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 per cent of Cairo Medical Center’s shares must be tendered by shareholders. Given the commitments already secured, Abraaj looks likely to meet that level.
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 health care,” said Ahmed Badreldin, a partner and head of Middle East and North Africa at Abraaj.
Abraaj has investments in hospitals in South Asia, South East Asia and sub-Saharan Africa, it said.
* with Reuters
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