The Board of Directors at Cleopatra Hospital Group has approved recently proposed plan to fully acquire the entity which represents Alameda Healthcare Group.
Cleopatra Hospital would make the purchase by issuing convertible debt to Alameda’s shareholders, the amount of which, including the underlying shares, would depend on the fair value of the merged entity. The latterwould be assessed by an independent financial advisor,with the new shares would be locked-in for a year.
Part of the debt can also be converted to cash as part of the final contract. The deal however, still awaits due diligence and regulatory approval.
The transaction could value Alameda, which owns four hospitals including Dar El Fouad, at about $450m-$500m including debt.
The latest development comes following the news in February that the two sides were in talks over the deal. It was noted that the two entities were valued almost equally at around EGP 10bn each, taking into perspective the aforementioned figures.
The proposed deal is projected to value Alameda’s EV 10% higher in comparison to Cleopatra Hospital. New York-based Guggenheim Investments was supposedly acting as the financial advisor for Alameda Healthcare, while EFG Hermes is advising Cleopatra Hospital.