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The Competition Authority of Kenya (CAK) has approved the proposed acquisition of a controlling stake of Nairobi Women's Hospital by the founder Sam Thenya in a deal valued at more than Sh700 million shillings.
The deal paves the way for Dr Thenya to take back ownership of the hospital he founded in 2001 from US-based private equity fund Evercare Health Fund.
"The CAK has approved the proposed acquisition of 75 per cent shareholding in Healthlink Management Ltd by Dr Sam Maina Thenya, a medical practitioner and founder of Nairobi Women's Hospital Group, unconditionally," said the CAK in statement.
"This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for the provision of health care services by private hospitals in Kenya, nor elicit negative public interest concerns."
Before the transaction, Thenya held a 25 per cent stake in Healthlink, which trades as Nairobi Women's Hospital through nine branches around the country, while Evercare held the controlling stake.
CAK did not give the value of the deal, but lawyers and transaction advisors privy to the transaction who spoke on condition of anonymity said Thenya will pay more than Sh700 million.
"The transaction involves a cash consideration of Sh700 million for the additional 50 per cent stake that will now see Dr Thenya have a majority 75 per cent ownership," the source told The Standard.
This puts the value of Nairobi Women's Hospital at approximately Sh1.5 billion.
"Merging parties whose combined turnover or assets, whichever is higher, is over Sh1 billion are required to seek approval from the authority before implementing the proposed transaction," said CAK in the statement.
Founded in 2001, Nairobi Women's Hospital has a 726-bed capacity in its nine branches, serving more than 340,000 outpatients and 20,000 inpatient clients annually.
The firm holds a four per cent market share (in terms of bed capacity) and also runs The Nairobi Women's Hospital College.
The transaction comes months after The Metro Group acquired Metropolitan and Ladnan hospitals.
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