Tuesday, December 16, 2014

Abraaj partially exits stake in Integrated Diagnostics - Mubasher.Info | Egypt

http://english.mubasher.info/EGX/news/2656079/Abraaj-partially-exits-stake-in-Integrated-Diagnostics#.VJAJ9CcXlFU

Analysts are wondering why Abraaj are pulling off from such a lucrative investment opportunity, though it has previously bought Al Borg laboratory (Billion 1.2), for a price way above fair market price estimated by analysts at that time around (EGP 6 Hundred Million) before even conducting a proper legal and financial due diligence reports. Others are assuming the latest serious consumer problems in the Egyptian market that happened with Spinney's Cairo, that ended up by closing down Spinney's branch in New Cairo, further, legal problems associated with Dr. Momena Kamel and her medical laboratories (El Mokhtabar) which has been also bought by Abraj's Subsidiary, which now owns El Borg Medical Lab and El Mokhtaber, which might raise a monopoly over medical laboratories market in Egypt, which some corporate lawyers are currently studying, filing a price fixing complain to the competition authorities in Egypt to investigate it, which may in our opinion have a very negative impact on the company's image and potential IPO in Dubai which the company is planning to pursue. It also came to our knowledge, that the company has squeezed out it junior investors which also may lead to complains to the Capital Market Authority, in addition to many complains filed by the company against it board members and senior managers those against the company.

The company is required by legal experts to explain its situation in the Egyptian market, and the sources of its finances, due to several suspicions of money laundry, which is in process to be file at the money laundry unit in Egypt, by several activists, otherwise, we expect all such factors to negatively and strongly affect its IPO valuation. With the absence of any public announcements by the company's representative in Egypt, investors are left to disbelief in the financial of Abraj company and its reputation in the Egyptian market.

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