UAE's ADCB says received offers for its stake in Alexandria Medical Services

The bank acquired 51.5% stake as a settlement for dues with NMC

  
General view of Abu Dhabi Commercial Bank logo on January 4, 2017 in Dubai, United Arab Emirates.

General view of Abu Dhabi Commercial Bank logo on January 4, 2017 in Dubai, United Arab Emirates.

Getty Images/Tom Dulat

UAE-based Abu Dhabi Commercial Bank (ADCB) said it has received initial non-binding offers from potential investors for the sale of its 51 percent stake in the Alexandria Medical Services - Alexandria New Medical Center.

CI Capital is ADCB’s advisor for the potential sale.

In a statement on Abu Dhabi Stock Exchange the lender said it has sought the details of potential offers. Once that is received, ADCB will disclose the final list of potential buyers and the timeline for submitting the final bids.

Alexandria Medical Services - Alexandria New Medical Center offers medical diagnostic and treatment services in various medical fields.

However, Cleopatra Hospitals Group (CHG), Egypt’s largest private hospital group, has announced its intention to acquire Abu Dhabi Commercial Bank’s (ADCB) 51.5 percent stake in the company.

CHG submitted an initial non-binding letter of intent to the sell-side financial advisor, CI Capital, and is currently negotiating the terms of the letter, CHG said in a bourse disclosure on Tuesday.

In December 2020, ADCB acquired a 51.54 percent stake in Alexandria Medical Services - Alexandria New Medical Center’s capital for 64 million dirhams ($17.4 million) as a settlement for the bank's dues with B.R. Shetty, the founder of NMC Health.

The UAE-based lender, which is NMC Health’s biggest creditor, had an exposure of $981 million to the company. ADCB also had an exposure of $182 million to payments group Finablr, whose majority shareholder was also Shetty.

ADCB started marketing its stake in the company on 8 March 2021, according to the company's disclosure to the Egyptian Exchange (EGX) last month.

(Reporting by Brinda Darasha; editing by Seban Scaria) 

brinda.darasha@refinitiv.com

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© ZAWYA 2021

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