Abraaj seals Turkish heathcare stake deal
Istanbul, January 24, 2012
Dubai-based Abraaj Capital said it has completed the transaction to divest its entire 50 per cent shareholding in Turkish healthcare provider Acibadem to the newly-formed Integrated Healthcare Holdings and Malaysia's Khazanah Nasional.
As per the agreement, Integrated Healthcare and Khazanah have acquired a combined 75 per cent shareholding in Acibadem from Abraaj Capital and the Aydinlar family through a combination of cash payment and the exchange of newly issued Integrated Healthcare shares.
With the conclusion of the transaction, Abraaj Capital emerges as a shareholder in Integrated Healthcare which will become one of the largest private healthcare providers in the world, with a broad footprint of assets in Malaysia, Singapore, India, Turkey and an operating presence in China, Brunei, Abu Dhabi, Central and Eastern Europe.
Integrated Healthcare is currently owned 70 per cent by Pulau Memutik Ventures, a wholly owned subsidiary of Khazanah, and 30 per cent by MBK Healthcare Partners Limited, a wholly owned subsidiary of Mitsui & Co (“Mitsui”).
Abraaj Capital and Acibadem will be formally represented on the board of Integrated Healthcare by Omar Lodhi, CEO of Abraaj Capital Asia, and Mehmet Ali Aydinlar, chairman and CEO of Acibadem. Abraaj Turkey CEO Selcuk Yorgancioglu will continue to serve on the Acibadem board.
Abraaj Capital’s investment in Acibadem through its Funds was predicated on a strong belief in the growth fundamentals of Turkey, the potential of the private healthcare industry, and Acibadem’s broad network of operating hospitals, brand equity and experienced management team.
Since the time of Abraaj Capital’s investment, Acibadem has grown to become one of Turkey’s largest private healthcare groups. The group’s operational presence grew from 6 to 14 hospitals and bed capacity increased from 750 to over 1,850 in four years.
On the deal, Arif Naqvi, founder and group chief executive, 'Abraaj Capital has been closely aligned with Acibadem in the vision of establishing a world class hospital management system in Turkey and, together, building the premium healthcare service provider in one of the fastest growing economies.'
'Having successfully achieved this vision, we are confident that Acibadem is well positioned for growth in a dynamic sector and will continue to thrive under the active ownership of the Integrated Healthcare Group,' he remarked.
Commenting on the transaction, Khazanah's MD Azman Hj Mokhtar said, “Khazanah is delighted to welcome Abraaj Capital as a shareholder in our key investee company, Integrated Healthcare Holdings.'
'We greatly value the experience and expertise that Abraaj Capital brings and we look forward to growing Integrated Healthcare’s franchise in Turkey and beyond”.
Bank of America Merrill Lynch and Goldman Sachs International acted as joint financial advisors to Abraaj and the Aydinlar family on the transaction, while Freshfields Bruckhaus Deringer acted as legal advisors.-TradeArabia News Service