Abraaj bids $186mn for Egypt's Al Borg

Abraaj Capital of the United Arab Emirates has offered 1.01 billion Egyptian pounds ($186 million) for 100% of Egyptian medical services company Al Borg Laboratory.

In a statement issued through the stock exchange on Thursday, Abraaj said it was willing to pay 225 pounds a share for the company, which describes itself as the largest private medical laboratory network in the Middle East.

Al Borg shares rose 5% to 134.40 pounds on Thursday.

Abraaj said it would be willing to buy a minimum of 51% of the 4.5 million shares in Al Borg, which has 58 branches in Egypt, 11 branches in Saudi Arabia and two in the United Arab Emirates.

Along with several Gulf investment companies, Abraaj has made several large investments in Egypt in recent years. But in two of its biggest deals, it quickly sold its Egyptian assets off to other companies.

In February it sold Egyptian Fertilisers and a stake in a Nigerian fertiliser company to Egypt's Orascom Construction Industries for cash and shares worth about $1.59 billion. It bought Egyptian Fertilisers in May 2007 for $1.4 billion.

In November last year it sold its stake in Egyptian investment bank EFG-Hermes to Dubai Financial Group for $1.1 billion, after holding it for 14 months.

Al Borg Chief Executive and Chairman Ahmed El Saifi set up the shareholding company in 1991. It has 900 staff, including 146 doctors, according to its Web site.

Al Borg approved a dividend of 7.93 pounds a share in March but its 2007 results were not immediately available. (Reuters)

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