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Speed Medical to set up new firm; rejects share exchange with City Lab

Speed Medical to set up new firm; rejects share exchange with City Lab
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Speed Medical
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Cairo – Mubasher: The Board of Directors of Speed Medical Company approved the establishment of Speed for Medial Facilities Management Company with a 50% contribution from the company’s shares in a bid to manage hospitals, clinics, and medical centres of others in return for part of profits.

It has also rejected the share exchange with City Lab as it will significantly and directly reduce shareholders’ ownership. The decision was made in light of the value issued by the independent financial adviser at EGP 97 million, according to a bourse statement on Wednesday.

Moreover, the board agreed to open two new Speed Medical clinics in Heliopolis and Sheikh Zayed city before the end of February 2021, in addition to five new Speed laboratories in Tanta, Maadi, Abbas Al Akkad Street, Saint Fatima Square, and Al Alf Maskan district before the end of this November.

In addition, it approved acquiring Nour El Eslam El Awael Laboratories in Beheira and Kafr El-Sheikh Governorates for not more than EGP 6.5 million following a period of three months from the due diligence process. The laboratories are three branches that generate EGP 3 million of annual revenue and EGP 1 million of net profit.

Furthermore, it agreed to take over El Sharq Laboratories (two branches) in Kafr El-Sheikh Governorate, which achieve EGP 1 million in average annual revenue and EGP 450,000 in net profits. This deal will be carried out at a maximum value of EGP 2.5 million following a period of three months from the due diligence process.

During the first nine months of 2020, Speed Medical reported a 199% annual leap in net profits at EGP 49.08 million.