The Sovereign Fund of Egypt (“TSFE”) through its healthcare and pharmaceutical industries Subfund (“TSFE Healthcare & Pharma Subfund”) and B Investments Holding S.A.E. (“B Investments”), BPE Partners’ flagship investment vehicle, are pleased to announce the signing of two agreements to invest over EGP 2 billion in specialized healthcare, and pharmaceuticals distribution and trade services in Egypt.
The first agreement stipulates that TSFE commits to invest EGP 100 million in B Healthcare Investments S.A.E. (“BHI”). BHI was established by B Investments as its designated investment vehicle to invest in the Egyptian specialized healthcare sector with an initial focus on fertility, mother-and-child, and related services businesses. Currently, BHI owns 51% of the Egyptian IVF Center, the pioneer of in-vitro fertilization (“IVF”) and one of the leading fertility centers in Egypt and the MENA region. BHI is targeting to raise up to EGP 1 billion of which B Investments and TSFE have committed to invest EGP 200 and EGP 100 million, respectively, with the rest to be offered to local and regional private sector investors.
Through the second agreement, B Investments will invest in TSFE Healthcare & Pharma Subfund’s established investment platform dedicated to investing in pharmaceuticals distribution and trade services. The platform aims at enhancing efficiencies and injecting capital to support infrastructure upgrades required to institutionalize the sector. The platform will be partnering with local champions in the market to accelerate their growth into under-served cities in Egypt and across the region. It will also aim at leveraging the latest technological solutions to provide a wide range of digital offerings that will lead to cost efficiencies, ensure market stability, and improve customer experience. A total of EGP 1.2 billion will be deployed in the first phase with aspirations to grow even further as more investment opportunities arise.
“TSFE prioritizes the development of the healthcare sector as a prerequisite to achieving sustainable and inclusive economic growth, in line with Egypt’s Vision 2030 goals, as well as the Sustainable Development Goals (SDGs)” said H.E. Dr. Hala H. ElSaid, Egypt’s Minister of Planning and Economic Development and Chairperson of TSFE. “These two investments contribute to providing Egyptian citizens with improved services and are a step forward towards institutionalizing the sector. In addition, TSFE’s investment model is also realized whereby its mandate of partnering with private investors and developing key strategic sectors while achieving sustainable financial returns for future generations, is fulfilled”.
H.E. Dr. Khaled Abdel Ghaffar, Minister of Health and Population, affirmed that the political leadership supports collaborative and developmental efforts between the public and private sectors, stressing that the Egyptian state is committed to achieving the goals of sustainable development and Egypt’s Vision 2030, which prioritizes raising the standard of healthcare services offered to Egyptian citizens. Thus, the Ministry of Health and Population is keen to promote investment in the healthcare sector in cooperation with businesses and investors in the field, following a sophisticated vision and strategy that aim to position Egypt among the ranks of developed countries when it comes to investment in healthcare.
“The ministry adopts a strategic approach to create partnerships with both domestic and international private sector companies in the fields of healthcare and pharmaceutical industries, enabling it to gradually transition from being a medical service provider to a regulator in order to provide better health care services to patients. We highly value our relation with The Sovereign Fund of Egypt and BPE’’ H.E. added.
“We are honored to partner up with TSFE to invest in the Egyptian specialized healthcare space” stated Mr. Hazem Barakat, Co-founder and Chairman of B Investments. “We recognize the significant value that TSFE brings to BHI and are looking forward to support and grow local healthcare players. “
“This partnership marks TSFE’s first investment into the healthcare and pharmaceutical services industries. We are glad to partner with BPE Partners who possess the required investment management expertise to realize our shared vision of providing affordable, high quality healthcare services across all regions in Egypt. Together, we will capitalize on the sector’s potential for growth with a larger geographical reach and technology enablement” said Mr. Ayman Soliman, CEO of The Sovereign Fund of Egypt. “TSFE’s trade pharma platform is an integral pillar in the subfund’s strategy. Egypt’s pharmaceutical industry is currently worth over EGP 130 billion and our aim is to provide investment solutions to enhance governance, achieve cost efficiencies and ensure market stability to unlock the sector’s full potential” he added.
“We are excited to invest alongside TSFE in this strategic sector of the Egyptian economy” added Mr. Mostafa El-Anwar, CEO of BPE Partners. “We intend to leverage our collective investment management expertise to institutionalize local healthcare businesses, expand healthcare services to the wider demographic of Egypt, and implement high ESG standards to support the competitiveness of the Egyptian healthcare market.”
Both transactions are subject to customary regulatory approvals and are expected to close during the first half of 2023.
BPE Partners is pleased to announce that its flagship-managed investment vehicle, B Investments, has signed definitive agreements to sell its entire stake of 6.38% in TotalEnergies Marketing Egypt LLC (“TE”) to TotalEnergies Marketing Afrique SAS (“TEMA”) for a total consideration of USD 27.6 million. Furthermore, B Investments is eligible for an additional amount equal to USD 2.2 million subject to certain milestones concerning TEMA’s transaction with Abu Dhabi National Oil Company for Distribution (“ADNOC”).
“We are very pleased to have established a decade-long successful relationship with one of the leading global energy players to create one of the largest private sector oil & gas companies in Egypt. Achieving another successful exit further demonstrates our ability to create significant value in our portfolio companies and ultimately, for our shareholders” said Mr. Hazem Barakat, Co- Founder & Chairman of B Investments.
“This transaction marks another key milestone for B Investments and is a clear testament to the company’s ability to realize the value of its underlying assets for shareholders” added Mr. Mostafa El-Anwar, Chief Executive Officer of BPE Partners
In 2013, B Investments acquired 7.97% of TotalEnergies Marketing Egypt through a capital increase which supported the company to increase its retail gas stations from 70 stations to 240 stations in 2022.
This transaction is subject to customary regulatory approvals and is expected to close during the first quarter of 2023.
– End of Press Release –
Established in 2006, B Investments is an Egypt-based private equity firm and growth capital investor that pulls a wealth of expertise to actively create value in its portfolio companies.
The company’s portfolio investments include Madinet Nasr for Housing and Development (MNHD), TOTAL Energies Egypt, Giza Systems, Ebtikar for Financial Investment, Basata Holding, Gourmet, and Infinity Solar Assets (3 solar power generating assets in Benban, Egypt).
B Investments is committed to unlocking value in companies through partnerships that will help create jobs and contribute to the growth of the Egyptian economy.
B Healthcare Investments was established in 2021 and is B Investments’ specialized healthcare investment arm. The company’s investments strategy focuses on investing in leading Egyptian specialized healthcare companies. B Healthcare Investments’ authorized capital currently stands at EGP 1 billion.
The Egyptian IVF Center is one of the first two fertility centers in the region, a project undertaken in 1986 by world renowned gynecologists Prof. Mohamed Aboulghar, Prof. Gamal Serour and Dr. Ragaa Mansour. As Egypt’s first fertility facility, its highly skilled team has gained unparalleled experience in treating various fertility problems and contributed to international research in reproductive medicine; hence, the Egyptian IVF Center attained an international reputation and has been attracting patients from all over the world.
The facility has been helping thousands of families in Egypt and worldwide for almost three decades. Furthermore, the company’s facility does not only provide the knowledge and expertise of its prominent physicians but operates at high technological and ethical standards. Strategically located in Maadi, Cairo, the facility is accessible to patients travelling from all over the country. The company’s staff includes pioneers in the field of IVF as well as a team of a 119 talented and trained medical personnel. The Egyptian IVF Center’s services vary from consultation, offering advice and explanations to full medical intervention.
B Investments’ board has accepted a binding offer for the acquisition of its entire stake (economic interest of 44.7%) in Giza Systems by Solutions by STC, a subsidiary of Saudi Telecommunication Company (STC). The offer values 100% of Giza Systems at an Enterprise Value of USD 145 million. The final Equity Value will be determined based on net debt and working capital figures at closing.
The transaction is subject to finalizing transaction documents and customary regulatory approvals.
B Investments’ ownership in Giza Systems is through its subsidiary Inergia Technologies (“Inergia”). B Investments owns 68.0% of Inergia and Inergia owns 65.7% of Giza Systems. Hence, BINV’s economic interest in Giza Systems through Inergia is 44.7%.
B Investments Holding is pleased to announce that it has entered into an agreement to sell 20% of its stake in Total Egypt to Total Outre-Mer for a total consideration of approximately EGP 146 million, in accordance with the exit terms pre-agreed with Total at the time of B Investments Holding investment in Total Egypt.
Following the completion of this transaction, B Investments’ stake in Total Egypt will drop from 7.97% to reach 6.38%.
“This transaction marks an important milestone for B Investments” stated Mr. Hazem Barakat, Co- Founder & Chairman of B Investments. “We are very pleased to have been a part of Total Egypt’s growth story and we look forward to continuing our fruitful partnership with Total”.
In 2013, B Investments acquired 7.97% of Total Egypt through a capital increase which supported the company to increase its retail gas stations from 70 stations in 2013 to 240 stations in 2020.
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