Al Ahli Capital Holding has signed an agreement to acquire Elsewedy Education Holding Company’s 40% stake in the developer of the CIRA University project in New Damietta city, according to a joint statement (PDF). Under the agreement, Al Ahli Capital will acquire all of Elsewedy’s 30 million shares in Cairo Egypt for Educational Facilities, while CIRA Education will retain its 60% stake unchanged. Upon obtaining approval from the Egyptian Competition Authority, the parties are currently working on finalizing the share transfer procedures and expect to close the transaction before the end of 2026. Neither party disclosed the transaction value.
What does the transaction add to Al Ahli Capital? The 58-feddan project in New Damietta is set to be transformed into an advanced international center for science and technology, comprising three independent universities featuring 19 faculties, which in turn offer 91 study programs. Upon completion, the campus will accommodate approximately 30,000 students. The first phase of the project is scheduled to open during the 2027-2028 academic year, aligning with the timeline set by CIRA CEO Mohamed El Kalla, when he anticipated at a press conference held last August that the university would open its doors in September 2027. Al Ahli Capital, the investment arm of the National Bank of Egypt, looks forward to deploying its investment and financial expertise to support the development of Badr University in Damietta, as stated by Karim Saada, Managing Director and CEO of the company, in the release.
The transaction deepens an existing partnership. Al Ahli Capital and CIRA own Al Ahli CIRA for Educational Services, established in 2021 with a capital of EGP 2 billion, which undertook the construction of Cairo Saxony University for Applied Sciences and Technology. Consequently, Cairo Egypt for Educational Facilities becomes the second educational platform owned jointly by the two parties. El Kalla noted that this makes their alliance "the largest of its kind in Egypt's education sector," adding that the partners plan to expand their educational portfolio with new projects including schools, universities, and other educational facilities.
Likewise, Elsewedy will not end its partnership with CIRA; the two parties have jointly established three schools in Greater Cairo and are planning further joint projects, according to El Kalla and Ahmed Elsewedy, Chairman of Elsewedy Capital. Elsewedy added that the Damietta project is now transitioning to a partner possessing the necessary capabilities to propel it to its next phase.
Advisors: Grant Thornton Egypt acted as financial advisor and conducted financial due diligence for Al Ahli Capital, while KPMG provided tax advisory and tax due diligence services. Namek Law Firm handled legal due diligence and transaction documentation, and successfully secured approval from the Egyptian Competition Authority. Nixon Peabody served as exclusive financial advisor to the seller.
Other M&A News in the Pharmaceuticals Sector
Rameda’s Board of Directors has approved a plan to acquire all shares of Art Pharma via a share swap, and tasked Managing Director Amr Morsy with presenting the offer to the company's shareholders, according to a disclosure received by the exchange (PDF). Under the plan, Art Pharma shares will be swapped in exchange for its shareholders receiving new capital increase shares in Rameda. The transaction value has not yet been determined, as Baker Tilly, acting as the independent advisor, will valuate both companies and determine the swap ratio, which will then be presented to the board of directors. The resolution included a key condition that the offer must be approved by holders of at least 90% of Art Pharma's shares, otherwise the acquisition will not proceed.
Related-Party Transaction: The disclosure noted that the board made this decision after excluding the votes of members affiliated with "the principal shareholder owning the target company," without disclosing their names or the shareholder's name. However, Rameda's board of directors page clarifies the entity to which these shareholders belong; Sherif El Akhdar, Non-Executive Chairman of Rameda, serves as the founder of LimeVest and is also a board member of Art Pharma. The same applies to Dalia El Shal, Rameda board member and CFO of the LimeVest Group, who joined Rameda's board representing "LVB Pharma" — the private equity arm of the LimeVest Group — which owns 31.5% of Rameda's shares. Board member abstention in a transaction concerning a company where they hold a board seat is standard procedure for handling related-party transactions; therefore, independent valuation, rather than board approval, will be the decisive factor in determining whether the swap ratio is fair.
Rameda had previously paved the way for this direction; in last March, while LVB Pharma was increasing its stake in Rameda, Mahmoud Fayek, Chief Operating Officer and CFO of the company, told us that Rameda continues to "actively work on evaluating value-accretive opportunities, whether through strategic pharmaceutical acquisitions or broader corporate transactions." By June, Mohamed Abou Amera, Chief Financial Officer of the company, indicated that instead of acquiring companies, Rameda is narrowing its target scope by acquiring high-margin pharmaceutical products and formulations that can be immediately integrated into existing production lines without the need for any capital expenditure. However, the Art Pharma transaction is moving in a different direction; this time targeting a factory in 6th of October City established in 2015, rather than merely a medical product. The factory produces sterile dental local anesthetic ampoules under the brand name Art Pharmadent, a new field in which Rameda is not currently active within its portfolio focusing on generic drugs, nutritional supplements, and veterinary products.
