Cairo – Mubasher: The board of directors of Speed Medical Company rejected the evaluation of the company as the management believes that it does not reflect the real value of the company.
The company will wait for the first quarter (Q1) financial results to be released in order to have an evaluation that better reflects the company’s value, according to a bourse disclosure on Sunday.
The company will still proceed with the acquisition of Prime Speed Healthcare at a satisfactory value to the management and shareholders and under the approval of 75% of the general assembly.
Last Thursday, the board approved the fair value (FV) of Prime Speed Healthcare at EGP 1.823 billion and Speed Medical at EGP 2.415 billion or EGP 2.18 per share.
In addition, the board decided to sign an agreement to acquire Prime Speed Healthcare in a non-cash transaction as the value of these shares will be registered as a credit balance in the records of Speed Medical in favour of the selling partners of Prime Speed Healthcare.
The agreement was signed on 31 March and Prime Speed Medical Services has become 100% owned by Speed Medical.
In 2020, Speed Medical achieved net profits of EGP 79.2 million, up from EGP 17.09 million in 2019, including minority shareholders’ rights.