The Competition Authority of Kenya (CAK) has approved acquisition of 56.2 per cent stake in Kenyan hospital chain Avenue Group by Dubai-based private equity (PE) firm Abraaj Group.
CAK in a gazette notice Friday, gave the go-ahead for the transaction indicating Abraaj Group’s stake in Avenue will not negatively affect competition.
“…it is notified for general information of the public that the Competition Authority of Kenya has authorised the proposed acquisition of 56.2 per cent shareholding in the Avenue Group Ltd by Abraaj Healthcare Group Hospitals Mauritius Limited on condition that Abraaj Healthcare Group Hospitals Mauritius Ltd retains all the employees of Avenue Group Limited,” said CAK director-general Wang’ombe Kariuki.
Abraaj Group has since last year been shopping to expand its interests in Kenya’s healthcare sector. It has a purse of Sh101.3 billion ($1 billion) targeting South Asian and African markets.
The Abraaj Group works across growth markets of Africa, Asia, Latin America, the Middle East, and Turkey managing Canadian $9 billion across regional, sector and country-specific funds.
ACK also approved the buyout of Ladnan Hospital Ltd by Metropolitan Hospital Holdings Ltd through a 100 per cent stake buyout on condition that Metropolitan retains all employees of Ladnan Hospital.
The watchdog also approved the acquisition of 100 per cent shareholding in Metropolitan Hospitals Limited by Metropolitan Hospital Holdings Limited on same condition.