By John Gachiri
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.
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