The Abraaj Group announces submission of tender offer for listed Egyptian hospital
The Abraaj Group (‘Abraaj’ or ‘The Group’), a leading investor operating in global growth markets, today announced its submission of a mandatory tender offer to acquire, through one of its Funds, up to 100% of the shares of Cairo Medical Center S.A.E, which is listed on the Egyptian Stock Exchange (EGX). The mandatory tender offer is conditional to 51% of the total outstanding shares being tendered. Abraaj has already obtained irrevocable sale undertakings from the shareholders owning 50.09% of the company.
Cairo Medical Center was founded in 1976 by Dr. Hassan Zahed as the leading comprehensive tertiary care private hospital in Egypt. It is located in Heliopolis, in a central location of East Cairo. Cairo Medical Center is a purpose-built facility and operates 177 licensed beds, eight operating rooms (including one dedicated open heart operation room), over 20 outpatient consultation rooms and an emergency room. It also operates an endoscopy unit, a cardiac catheter department, a cardiac investigation center, a physiotherapy department, a laboratory and an imaging center. Abraaj plans to undertake a significant capital expenditure program at Cairo Medical Center with the objective of upgrading the medical facilities, installing state of the art equipment throughout the hospital and investing in staff training to ensure that the hospital delivers comprehensive, affordable and high quality medical services to patients.
Abraaj has significant expertise in the hospital sector, having invested in Acibadem, a leading healthcare group in Turkey. During Abraaj’s four year investment in Acibadem, the business grew from 6 to 14 hospitals, increased bed capacity from 750 to over 1,850, and created approximately 5,000 jobs. Abraaj has also invested in the hospital sector in South Asia, South East Asia and Sub-Saharan Africa.
Commenting on the investment in Cairo Medical Center, Ahmed Badreldin, Partner and Head of MENA at The Abraaj Group, said: “Our investment in Cairo Medical Center fits our wider strategy of supporting resilient and critical industries such as healthcare, and helping to facilitate the provision of quality and affordable healthcare with a strong focus on upgrading facilities and medical technology to improve overall patient care standards.”
Angie Helmi, Director at The Abraaj Group, added: “We look forward to investing in Cairo Medical Centre, which we believe is a solid business with strong growth potential. Building on Abraaj’s experience in the healthcare sector and by leveraging our global network, we are confident that we are best positioned to help better align the hospital’s offering with the increasing demand for medical services.”
Dr. Tarek Zahed, Chairman of Cairo Medical Center, commented: “Cairo Medical Center is a landmark asset that was established by the late Dr. Hassan Zahed in 1976 and inaugurated in 1981. Over the past 33 years the hospital has provided medical care to a wide and diverse client base, with management ensuring that patients are served by a loyal team of top physicians as well as a qualified and experienced nursing team.”
Eng. Sayed Hassan Moussa, Vice Chairman of Cairo Medical Center, concluded: “Cairo Medical Center is the first private sector hospital built in Egypt. Since its inception, the hospital has undergone important upgrades including the addition of a CT scan machine, an open heart operation theatre and the installation of a cardiac catheter center with a focus on continuously improving patient care standards in Egypt.”
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