In one of the biggest healthcare transactions in Africa of the year, Cleopatra Hospital Group (CHG) is set to acquire UAE-based Alameda Healthcare Group’s Egyptian assets in a deal expected to close in the first half of 2021.

In a statement, CHG CEO Dr. Ahmed Ezzeldin states that the “transaction will allow us to provide medical care and services of the highest quality, setting the standard for healthcare providers across the country while delivering further efficiency and performance improvements for all our stakeholders. This is a transformational acquisition for CHG that will add three sizeable operating hospitals to our family while more than doubling the EBITDA of CHG post-closing.”

The deal will be subject to confirmatory due diligence, regulatory, and shareholders' approval, says the statement.

CHG has seen fast-paced growth this year due to several recent acquisitions; March saw the group acquire Queen’s Hospital in Cairo, while they bought El-Khatab Hospital in September.

The Alameda acquisition has already seen positive feedback; CHG closed 2.41 percent higher on the Egyptian Exchange on the same day of the announcement, surging up to 4.2 percent at around 12pm, closing with a market value of 7.6 billion.

Cleopatra noted that the new shares will have a lock-up period of 12 months from the conversion date. After the deal closes, Dr. Fahad Khater, Alameda’s founder and chairman, will become a “key and strategic shareholder” in Cleopatra and will take the title of vice chairman of the Egyptian company, in addition to his role as chairman of the Alameda hospitals.

The transaction could value Alameda Healthcare Group at around $450 million to $500 million, according to Bloomberg, who cites a source familiar with the acquisition. They also note that Khater is expected to become the second-largest shareholder in the combined group with an expected stake of about 25 percent after the transaction.

CHG Chairman Ahmed Badreldin stated that “post transaction, the combined bed capacity of c.1,450 beds will represent c.15 percent of the commercial bed capacity in Greater Cairo and c.4 percent of the commercial bed capacity in Egypt”.

Alameda’s network includes tertiary care hospitals in Cairo, as well as diagnostic centers, outpatient clinics and specialist care facilities.

Regarding the acquisition, EFG Hermes is acting as financial advisor while Freshfields Bruckhaus Deringer and Zulficar & Partners are acting as legal counsels to CHG. White & Case and Matouk Bassiouny & Hennawy, ALC Alieldean, Weshahi & Partners and Dechert LLP are acting as legal counsel to Alameda Healthcare Group and CI Capital is acting as their financial advisors.