Cleopatra Hospitals Group to acquire Alameda’s healthcare assets in Egypt

Cleopatra Hospitals Group (CHG), one of Egypt's largest private hospital groups, said it will acquire the Egyptian assets of the UAE's Alameda Healthcare Group.

The deal, which is expected to close in the first half of 2021, is subject to approval by the Egyptian regulatory authorities and CHG shareholders, the Egyptian Exchange-listed CHG said in a statement on Sunday.

Alameda is a UAE company that is owned and controlled by chairman Fahad Khater, and has a strategic partnership with Emirates Healthcare Group, part of Abu Dhabi-based investment firm KBBO.

“This is a transformational acquisition for CHG that will add three sizeable operating hospitals to our family while more than doubling the [earnings before interest, tax, depreciation and amortisation] of CHG post-closing,” Ahmed Ezzeldin, chief executive of CHG, said. “This will significantly increase the group’s bed capacity and allow CHG to enhance quality and value of care for all our patients.”

Alameda operates three hospitals in Egypt, including Dar El Fouad 6 of October, Dar El Fouad Nasr City and As-Salam International Hospital, while As-Salam International Hospital Katameya in new Cairo is expected to start operations in the first half of next year.

The transaction will largely be settled through the issuance of loan notes in favour of Alameda’s shareholders, mandatorily convertible into new shares by CHG and fully subscribed to by Alameda shareholders, according to the company.

A portion of the loan notes that are convertible into shares may be settled in cash, in accordance with the agreed mechanism in the deal, the company said.

Dissolution or liquidation 'likely' options for NMC Health

BR Shetty and two other directors resign from NMC Health

Alameda’s unaudited revenue for the nine-month period ended September 30 rose 4 per cent year-on-year to 1.49 billion Egyptian pounds ($94.9 million) “despite the overall market challenges resulting from the Covid-19 pandemic”, the statement said. Revenue grew 30 per cent during the three-month period from September to November.

“Post-transaction, the combined bed capacity of 1,450 beds will represent 15 per cent of the commercial bed capacity in Greater Cairo and 4 per cent of the commercial bed capacity in Egypt,” CHG chairman Ahmed Badreldin said. “The combined group will have the financial flexibility to invest in further expanding bed capacity across Egypt’s other governorates with a continued focus on improving patient care.”

Mr Khater will become a key shareholder in CHG and will take on the role of vice chairman, in addition to his role as chairman of Alameda Healthcare after the deal is closed, CHG said in the statement.

EFG Hermes is acting as financial adviser on the deal, while Freshfields Bruckhaus Deringer and Zulficar & Partners are acting as legal counsels to CHG. White & Case and Matouk Bassiouny & Hennawy, ALC Alieldean, Weshahi & Partners and Dechert are acting as legal counsel to Alameda and CI Capital is its financial advisers.

Demand for hospitals and medical services has increased across the world due to the coronavirus pandemic. Countries are spending heavily to boost healthcare infrastructure as pressure increases on hospitals to accommodate more patients.

KBBO Group, whose chairman Khalifa Bin Butti Al Muhairi was a significant shareholder in troubled hospital group NMC Health, appointed a team of restructuring advisers earlier this year to help put together a plan to reorganise its outstanding liabilities to various creditors. The company also has investments in education, food and retail, financial services and technology sectors.

BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES

SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities

Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails

Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies

Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments

Infiniti QX80 specs

Engine: twin-turbocharged 3.5-liter V6

Power: 450hp

Torque: 700Nm

Price: From Dh450,000, Autograph model from Dh510,000

Available: Now

If coronavirus overwhelms Gaza, there will be few others to blame but Israel

Profiting from loss: how business in illegal Israeli settlements continues unchecked

Bedouin mass eviction is part of Israel's concerted efforts to drive Palestinians from their historic lands

Kamala Harris: who is Joe Biden's running mate?

Race card

5pm: Handicap (PA) Dh80,000 (Turf) 1,600m; 5.30pm: Maiden (PA) Dh80,000 (T) 1,400m

6pm: Handicap (PA) Dh80,000 (T) 1,400m; 6.30pm: Handicap (PA) Dh80,000 (T) 1,200m

7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 2,200m

7.30pm: Handicap (TB) Dh100,000 (PA) 1,400m

Match info

Premier League

Manchester United 2 (Martial 30', Lingard 69')
Arsenal 2 (Mustafi 26', Rojo 68' OG)

While you're here

Joyce Karam: Chaotic first debate unlikely to swing undecideds

Hussein Ibish: Donald Trump's 3-step plan to cling to power

Sulaiman Hakemy: Make America lose again

Mrs%20Chatterjee%20Vs%20Norway

%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Ashima%20Chibber%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Rani%20Mukerji%2C%20Anirban%20Bhattacharya%20and%20Jim%20Sarbh%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A

While you're here

Andrew Wilks: Turkey’s promised reforms could recast US relations under Biden administration

David Lepeska: How two 16th-century pirates inspired Erdogan's foreign policy

Con Coughlin: Grandstanding in Turkey leads to terrorism in France

Mohammed bin Zayed Majlis

'We are betting on you - you are the future', Gargash tells young Emiratis

Young Emiratis are real target of fake news, Mohammed bin Zayed Majlis hears

Majlis 2018: Young Emiratis see entrepreneurship and innovation on the horizon

bundesliga results

Mainz 0 Augsburg 1 (Niederlechner 1')

Schalke 1 (Caligiuri pen 51') Bayer Leverkusen 1 (Miranda og 81')

The End of Loneliness
Benedict Wells
Translated from the German by Charlotte Collins
Sceptre

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

ABU DHABI ORDER OF PLAY

Starting at 10am:

Daria Kasatkina v Qiang Wang

Veronika Kudermetova v Annet Kontaveit (10)

Maria Sakkari (9) v Anastasia Potapova

Anastasia Pavlyuchenkova v Ons Jabeur (15)

Donna Vekic (16) v Bernarda Pera

Ekaterina Alexandrova v Zarina Diyas

While you're here

Con Coughlin: To survive, Nato must renew its sense of common purpose

Gavin Esler: Nato summit failed for making news more than it made deals

Simon Waldman: Nato continues to be Ankara’s best security guarantor

Mental%20health%20support%20in%20the%20UAE

%3Cp%3E%E2%97%8F%20Estijaba%20helpline%3A%208001717%3Cbr%3E%E2%97%8F%20UAE%20Ministry%20of%20Health%20and%20Prevention%20hotline%3A%20045192519%3Cbr%3E%E2%97%8F%20UAE%20Mental%20health%20support%20line%3A%20800%204673%20(Hope)%3Cbr%3EMore%20information%20at%20hope.hw.gov.ae%3C%2Fp%3E%0A

Essentials

The flights

Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours.

The package

Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.