Cairo – Mubasher: The board of directors of Speed Medical Company approved in principle the acquisition of a majority stake in Prime Speed Healthcare LLC, which owns 70% of Prime Speed Medical Services.
The transaction will be carried out without a cash payment, with the value of these shares registered as a credit balance in the records of Speed Medical in favour of the selling partners of Prime Speed Healthcare, the company said in a bourse disclosure on Wednesday.
The capital of Speed Medical will be increased at the stock’s fair value for the existing shareholders to pay for the acquisition.
If the liquidity resulting from the increase is insufficient, the proceeds of the subscribed part will be paid to the company’s creditors as part of the price of the acquired shares.
The board also approved the appointment of the Economic Group Financial Consulting Company for Securities as an independent financial advisor to assess the value of the shares of Prime Speed Healthcare, where the value of the deal exceeds 10% of the ownership rights of Speed Medical.
In 2020, Speed Medical achieved net profits of EGP 79.2 million, up from EGP 17.09 million in 2019, including minority shareholders’ rights.
