CHG files to obtain FRA’s approval on launching a tender offer to acquire up to 100% of ANMC

By Hamed Mahmoud

Cleopatra Hospital Group S.A.E., Egypt’s largest private hospital group by number of hospital beds and number of operating hospitals, filed this morning for regulatory approval of a mandatory tender offer (MTO) for 100% of the outstanding shares of Alexandria Medical Services S.A.E. (ANMC). Cleopatra is seeking approval from Egypt’s Financial Regulatory Authority (FRA) to offer ANMC shareholders EGP 38.53 per share, valuing 100% of ANMC at c. EGP 550 million. This is in line with the process that was initiated by Abu Dhabi Commercial Bank’s advisors (holding 51.5% shareholding in ANMC) in March 2021; through which CHG participated by submitting a non-binding offer, receiving the vendor due diligence reports and holding calls with the ANMC management team.

ANMC is one of the leading private hospitals in Alexandria with a 300-bed capacity and offering tertiary medical services, including a liver transplant unit, the only unit in North and West Delta region, an oncology unit and a kidney transplant unit. Through this acquisition, the Group aims to grow patient services and volumes at ANMC and will work closely with the hospital’s doctors and staff to meet an increasing demand for quality healthcare services in Alexandria through highly trained healthcare providers, high-quality facilities, and the latest medical technology.

This acquisition is set to mark a new milestone for the Group in its expansion to an operational hospital in the second largest city in Egypt; aligning with its core investment strategy of investing in large general hospitals, with capacity for growth and working with the existing teams to improve the quality of care, provide the highest quality and latest technology in medical services and continue to institutionalize the healthcare sector in Egypt.

Commenting on the new deal, CHG’s Chief Executive Officer Dr. Ahmed Ezzeldin said that ANMC is a strategic acquisition, as part of the Group’s expansion plan and strategy to develop and provide high-quality medical services to Egyptians across the country. The Group targets cities and facilities that address a clear supply-demand gap, the potential to offer new services and grow the existing business.