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City Lab snags stakes in five medical companies: Medical diagnostic services provider City Lab will acquire 50% of five medical companies through a mix of capital increases and a direct share purchase, after its general assembly approved several agreements, the company said in an EGX disclosure (pdf).
The who: The medical labs operator will own half of Egypt-based firm Distinguished Diagnostics, Saudi firm Saudi Egyptian Company for Medical Laboratories, Premium Diagnostics UAE, KSA-based Distinguished Diagnostics, and a clinics company.
The price tag: The acquisitions will cost City Lab a combined EGP 233.5 mn, with the stake acquisition of KSA-based Distinguished Diagnostics being the most costly, coming in at EGP 195 mn. The company will pay EGP 4.4 mn for Egypt-based Distinguished Diagnostics, EGP 1.3 mn for Saudi Egyptian Company for Medical Laboratories, EGP 24.3 mn for Premium Diagnostics UAE, and EGP 8.5 mn for the clinics company.
Remember: We heard about two of these acquisitions — those of Egypt-based Distinguished Diagnostics and Saudi Egyptian Company for Medical Laboratories — in August.
City Lab’s acquisition of Premium Diagnostics UAE shares comes after it sold shares to the Emirati company only a few months ago: Back in June, City Lab sold some 88 mn shares — representing 13.8% of the company — for a total of EGP 51 mn in a block trade transaction on the EGX to Premium Diagnostics UAE, bringing the company’s stake in the firm to 25.0% from 9.38% after Premium Diagnostics UAE’s initial stake purchase in May. The sale followed City Lab’s extraordinary general assembly last month approving selling up to 250 mn worth of shares to Premier Diagnostics’ Saudi, US, Emirati, and Egyptian arms.
City Lab has been on an acquisition spree of late: The company last week finalized its long-awaited purchase of Cairo Clinical Labs, which saw City Lab acquire its target for EGP 59 mn in cash and promised capital increases. We also reported yesterday that the company had okayed a non-binding MoU to acquire a hospital services management company, following a fair value study and the completion of due diligence.
