The number of shares in issue at Asiri is 889.26 million and following the private placement, the leading emerging markets private equity investor Actis will hold a 19% stake. The move is subject to regulatory and shareholder approval. The fresh deal comes hot on the heels of ACTIS last week buying a 10.82% stake or 2.41 million shares in Asha Central at Rs. 250 each in a deal worth Rs. 604 million.
Asiri said proceeds from the private placement will be utilised to fund or part fund two acquisitions. One is the acquisition of 7.3 million shares in Asiri Central Hospitals Plc from Asiri Surgical Hospital Plc at Rs. 250 each and the other is the acquisition of 15.88 million shares in Central Hospital Ltd., from Asiri Surgical Hospital Plc at Rs. 25 each.
The excess of the proceeds after completing these acquisitions will be used by the company to increase its shareholding in Asiri Central Hospitals Plc and Asiri Surgical Hospital Plc and any remainder thereafter to reduce the general indebtedness of the Asiri Group of Companies.
The current stated capital of Asiri Hospitals is Rs. 1.63 billion as at 30 June 2012 as per the company’s latest disclosed interim accounts.
The company said an EGM will be convened to get shareholder approval for the proposed private placement.
Following the announcement, the share price of Asha Central shot up by Rs. 54.80 or 26.7% to Rs. 260.
Last week Softlogic Holdings and its subsidiary Dai-Nishi Securities Ltd. sold their entire holding of 2.4 million shares (nearly a 11% stake) in Asiri Central Hospital (ASHA) to Actis for Rs. 604 million realising a capital gain of Rs. 288 million to the group.
SHL also announced that it purchased 81 million shares (9% stake) of Asiri Hospital Holdings (ASIR) at Rs. 7.50 per share for a total consideration of Rs. 608 million.
Softlogic Chairman Ashok Pathirage said the rationale for entering into the transaction was to keep in line with Softlogic Holdings Plc’s strategy of consolidating its stake in Asiri Hospital Holdings Plc.
Consequently to the deal SHL Group increased its ownership of ASIR to 61.87% with SHL holding 55.12% and the balance held by Group companies.
In total Asiri Hospitals saw 81.5 million of its shares traded for Rs. 611.75 million and Asiri Central Hospitals 2.41 million shares for Rs. 604.39 million, bringing the total to Rs. 1.2 billion.