Mubasher: Cleopatra Hospital Group has approved filing for capital increase through a fully tradable rights issue at EGP 0.50 per share.

The board of directors will now seek regulatory approval from the Egyptian Exchange (EGX) to raise the capital of Egypt’s largest private hospital group by number of hospital beds and number of operating hospitals by EGP 700 million.

Proceeds from the transaction will be used to ensure the availability of EGP 580 million in additional resources to support the acquisition of a hospital of around 150 beds, and to improve the profitability by retiring EGP 120 million of the existing debt given the high cost of debt in the current interest rate environment, according to the company’s statement on Monday.

Due diligence on the transaction is currently in process, the statement noted.

Cleopatra Hospital Group intends to hold an extraordinary general meeting (EGM) of shareholders to ratify the rights issue.