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Cleopatra hospital allocates EGP 350m for upcoming expansion plan - Daily News Egypt

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Cleopatra hospital allocates EGP 350m for upcoming expansion plan

The company seeks to accelerate the pace of its acquisitions plan by acquiring Cairo Specialist hospital, as well as taking executive steps for building Al-Shorouk hospital


Cleopatra Hospital Company—one of the companies that offered its shares in the Egyptian Exchange (EGX) in 2016—allocated EGP 350m for 2017 within its investment plan. The company announced that it will inject the money over several years to expand its services and capacity which includes roughly 350 beds.

According to an official at Cleopatra—who requested to remain anonymous—2017’s plan focuses on two main aspects. The first aspect focuses on completing the purchase offer submitted for acquiring 47% of Cairo Specialist hospital, after Cleopatra presented the required documents to the Egyptian Financial Supervisory Authority (EFSA).

In November, Cleopatra presented a tender offer to purchase 1.2m shares of Cairo Specialist hospital to the EFSA, at a cash price of EGP 110 per share, and appointing EFG-Hermes as a financial advisor to the deal.

The Abraaj Group, the parent entity of Cleopatra, acquired 53% of Cairo Specialist hospital two years ago at EGP 106m.

Cleopatra owns shares in other hospitals such as Al-Shorouk hospital and the Nile Badrawi hospital. Their shares in the hospitals amount to 99.99% and 99.92%, respectively.

The second aspect focuses on Cleopatra’s intention to expand its subsidiary Al-Shorouk hospital. The company will use an adjacent space near the hospital’s building to establish a new treatment building, besides developing work systems and the continuous management of the group’s hospitals.

The source emphasised that the company is interested to expand across Greater Cairo by acquiring any promising investment opportunities, whether completed or under construction, or by establishing new entities.

The company had announced earlier that the recent increases in the price of the US dollar after the decision to float the Egyptian pound has increased the prices of medicine and has affected the supply in hospitals, which in turn has affected the medical services sector.

The source added that the company pays attention to social responsibility by signing cooperation protocols with the Ministry of Health, to support remote governmental hospitals that require medical and financial support.

The company recently signed a joint cooperation protocol with the Ministry of Health to support health care services in the New Valley governorate worth EGP 1.8m. Cleopatra will provide medical service support to El-Kharga General hospital and Dakhla hospital through financial funding allocated to contracting with various consultants in various specialties.

Cleopatra has achieved a net profit during the first nine months of 2016 worth roughly EGP 52.8m, compared to EGP 46.6m during the same period in 2015—an increase of 13.4%.

Cleopatra’s capital is worth roughly EGP 100m, divided into EGP 200 million shares, with a nominal value of EGP 0.5 per share.

Cleopatra offered 25% of its shares in the EGX during 2016, in an initial public offering (IPO) worth $360m at a price of EGP 9 per share. The share price closed on Thursday at EGP 15.11, an increase of 67.9% from the offering price.

 

https://dailyfeed.dailynewsegypt.com/2017/01/25/cleopatra-hospital-allocates-egp-350m-upcoming-expansion-plan/
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