Valuation of Cleopatra Hospital Group's acquisition on Alameda decreased

Valuation of the deal will be affected by the decline of the price of CHG’s share price on the stock exchange

  
A trader reacts next to a stock index board at the Egyptian Stock Exchange in Cairo August 11, 2011.

A trader reacts next to a stock index board at the Egyptian Stock Exchange in Cairo August 11, 2011.

REUTERS/Amr Abdallah Dalsh
ArabFinance: The potential acquisition of Alameda Holding Company by Cleopatra Hospital Group (CHG) (CLHO) has been ongoing and not affected by Corona pandemic, informed sources told Al Mal News.

In addition, the valuation of the deal will be affected by the decline of the price of CHG’s share price on the stock exchange, which decreased from EGP 4.32 to EGP 5.8 in early February, sources said.

Alameda Holding Company owns Dar Al-Fouad and Al salam international hospitals.

Earlier, CHG agreed with Alameda Holding on paying 50% of the deal value and the remaining percentage would be in shares owned by Alameda shareholders, Fahd Khater, and the United Arab Emirates-based KBBO Group.

In 2019, the company achieved a net consolidated profit of EGP 265,358,081, compared to EGP 315,198,499 a year earlier, including minority shareholders' rights.

Standalone profits reached of EGP 197,702,871 in 2019 decreased from EGP 204,257,943 in 2018.

Cleopatra Hospitals Group was established in 2014 after the acquisition of its East Cairo Hospitals, Cleopatra Hospital, founded in 1984, and Cairo Specialized Hospital, founded in 1976.

The Group expanded its geographical network in West Cairo to acquire two additional facilities, Nile Badrawi Hospital in 2015 and Al Shorouk Hospital in 2016.

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