Cairo – Mubasher: Cleopatra Hospitals Group (CHG) has invested more than EGP 1 billion in quality, infrastructure, and medical technology upgrades and since 2015.

In addition, the group has not distributed annual dividends and reinvested the entire of its profits into the business since then, according to a bourse disclosure on Tuesday.

The consolidation of CHG and Alameda will enhance the potential for investing in the sector with better access to lower cost capital which will be directed towards governorates that have a shortage of hospital bed capacity, the company said.

Over the last five years, the group’s market share has increased to about 8% of the commercial bed capacity in Greater Cairo, while the merged entity is expected to have around 15% of the market share with about 14,000 commercial beds.

The acquisition is expected to complete in the first half (H1) of 2020 after obtaining approvals from regulatory entities, including the Egyptian Competition Authority (ECA) which issued an objection in principle to the acquisition plan.

However, the group said that it started preparing for the conditions precedent (CP) satisfaction process to address the ECA’s concerns.

CHG signed an agreement for the acquisition of 100% of Alameda Healthcare Group’s assets in Egypt and was planning to pay for the deal by issuing convertible debt to Alameda’s shareholders.

During the first nine months of 2020, CHG logged net profits of EGP 182 million, up from EGP 169.9 million in the year-ago period, including minority shareholders’ rights.