The deal, pending certain conditions and regulatory approvals, is expected to close in the first half (H1) of 2021.
The UAE company Alameda, owned and controlled by its Chairman, Fahad Khater, owns and operates through its subsidiaries a number of hospitals and medical units in Egypt, such as Dar El Fouad 6th of October, Dar El Fouad Nasr City, As-Salam International Hospital, and As Salam International Hospital Katameya in new Cairo which is expected to begin operations in H1-21.
“The equity consideration for the transaction will be mostly settled through the issuance of loan notes in favour of Alameda’s shareholders mandatorily convertible into new shares by CHG to be fully subscribed to by the Alameda shareholders following the approval of its extraordinary general assembly meeting,” said Fahad.
A part of the loan notes convertible into shares may be settled in cash.
Upon completion of the deal, Fahad Khater will become a key shareholder in CHG and will be named the Vice Chairman of CHG and the Chairman of the Alameda hospitals.
EFG Hermes will be selected to advise on the deal, while Freshfields Bruckhaus Deringer and Zulficar & Partners will act as legal counsels to CHG.
During the first nine months of 2020, CHG logged net profits of EGP 182 million (US$11.57m), up from EGP 169.9 million (US$10.80m) in the year-ago period, including minority shareholders’ rights.
White & Case and Matouk Bassiouny & Hennawy, ALC Alieldean, Weshahi & Partners, and Dechert LLP will serve as legal counsel to Alameda Healthcare Group and CI Capital will act as their financial advisors.
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