Abraaj Group close to buying hospital in Egypt

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

Explainer: Tanween Design Programme

Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.

The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.

It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.

The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.

Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”

The specs

Engine: 3-litre twin-turbo V6

Power: 400hp

Torque: 475Nm

Transmission: 9-speed automatic

Price: From Dh215,900

On sale: Now

Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

McLaren GT specs

Engine: 4-litre twin-turbo V8

Transmission: seven-speed

Power: 620bhp

Torque: 630Nm

Price: Dh875,000

On sale: now

The Bio

Favourite place in UAE: Al Rams pearling village

What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft

Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans

Best time to swim in the sea: When there is enough light to see beneath the surface

COMPANY PROFILE

Name: Kumulus Water

Started: 2021

Founders: Iheb Triki and Mohamed Ali Abid

Based: Tunisia

Sector: Water technology

Number of staff: 22

Investment raised: $4 million

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative

Read part one: how cars came to the UAE