ArabFinance: The volume and scale of Cleopatra Hospital Group (CHG) are expected to be enhanced after implementing the acquisition of UAE’s Alameda Healthcare hospitals in Egypt, according to a January 12th disclosure.

The combination would result in strong future cash generation that is backed by Alameda’s EGP 3.5 billion capital expenditure program.

CHG elaborated that “the consideration is to be funded through assumption of Alameda attributable debt of EGP 3.3 billion.”

The transaction value will also be finance through an equity consideration of up to 884 million new shares to Alameda shareholders, implying up to 35% equity dilution, with current shares outstanding 1.6 billion.

Cleopatra Hospital’s market share has grown to 8% of the commercial bed capacity in Greater Cairo over the last five years, the statement indicated.

Following the takeover deal, the combined group is expected to have 15% of the Greater Cairo 14,000 commercial beds.

The new entity is expected to join Egypt’s universal health insurance system, according to CHG.

The acquisition deal is set for completion during the first half of 2021, subject to certain confirmatory due diligence and shareholder and regulatory approvals, CHG noted.

arabfinance