AAR chairman Dr. Frank Njenga (left) and MD Mark Ocholla during the signing of a deal with Swedfund. Photo/Jeff Angote
AAR Group is valued at nearly Sh2 billion, the latest acquisition deals involving the company show.
The healthcare provider’s chief executive Mark Achola on Monday said a capital injection of Sh382 million by State-owned private equity, Swedfund, was equivalent to a fifth of the company’s valuation.
The World Bank’s private sector lending arm, IFC, is also in negotiations with AAR to invest $4.5 million (Sh382 million) in the company.
“This gives them a 20 per cent stake each based on the latest valuation,” Mr Achola told the Business Daily at the announcement of Swedfund’s investment in AAR.
The valuation makes AAR potentially bigger than 18 Nairobi Securities Exchange listed firms in diverse sectors of the economy, based on their market capitalisation as at end of day on Friday.
Netherlands-based private equity fund Investment Fund for Health in Africa (IFHA) and the Beckmann family, who founded AAR in 1984, are the other major shareholders of the firm.
Capital injection into AAR has accelerated since the beginning of the year.
“We have attracted in excess of Sh1.5 billion in the past few months,” said AAR Group chairman Frank Njenga.
AAR plans to use the money to fund regional expansion, which includes acquisition and construction of hospitals in Kenya, Uganda and Tanzania.
A disclosure note on IFC’s proposed $4.5 million equity investment says AAR plans to buy two medium-sized hospitals, open four clinics each in Uganda, Tanzania and Kenya, upgrade two existing clinics and invest in an IT platform that is meant to increase efficiency.
Mr Njenga said that AAR has bought a hospital in Kampala, and was actively seeking one in Tanzania and Mombasa. AAR has 27 clinics, 11 in Kenya, eight each in Uganda with expansion expected to increase these to at least 41 facilities.
AAR also has a health insurance firm, which gives it greater control of operations and saves cost, especially minimising fraud which is rampant in the industry.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
