Hospital Holdings Investment B.V (HHI) a special purpose vehicle set up by Investment Fund for Health in Africa II (IFHA II) has acquired 50.4% of Nakasero Hospital, CEO East Africa Magazine can confirm.
“Yes it is true. We found we needed to improve on our current service and expand to provide some other services which we currently do not have and are needed. The shareholders of Nakasero hospital sat and agreed to look for an investor to come in with equity. That is how in our search we ended up with HHI,” Dr Ben Mbonye, the Chairman Nakasero Hospital confirmed to this reporter via Whatsapp.
He however declined to divulge other details of the deal.
However, according to our own sources, although details of the price are not yet clear, HHI is said to have acquired 1,787 shares of the total registered 3,541 shares from a number of the Hospital’s majority and minority shareholders.
Mercantile Global, a company owned by a 5 Indian businessmen living in Uganda and Nairobi, that include a Jaspal Phaguda, a the owner of Ezzi Stores that was previously the largest shareholder with 3,059 shares (86.4%) sold the biggest chunk- out of the that shed off 1,588 shares (44.8%), remaining with 1,471 shares (41.5%).
Montana Capital who held 100 shares, according to our sources reduced their stake to 67 shares while a Dr Robert Busingye, who previously owned 125 shares, sold of 75 shares remaining with 50. seventeen other minority shareholders each with shares ranging from 1 share to 50 shares either sold wholly, partially or did not sell.
Nakasero Hospital was started in 2009, by a team of Consultant Doctors with a common goal of setting up a world class hospital that would meet the healthcare needs of Ugandans and East Africans.
According to the hospital’s financials, the hospital has witnessed a steady 73% growth in revenue, from UGX15.5 billion in 2014 to UGX26.7 billion in 2017. As a result, the hospital recovered from a loss of UGX1.5 billion in 2014, making its first profit of UGX2.1 billion in 2016. In 2017, there was a 136% increase in profits to UGX5 billion.
Who is Hospital Holdings Investment B.V?
Hospital Holdings Investment B.V (HHI) is a special purpose vehicle set up by the Investment Fund for Health in Africa II (IFHA II). IFHA are private equity funds dedicated to small to medium size (equity) investments in private healthcare companies in Africa.
The private equity fund describes itself as investing in “private healthcare companies that operate in fast-growing markets and show unique advantages over the competition.”
IFHA predominantly focuses on companies active in care provisioning (hospitals, clinics and similar care providers), Health insurance, healthcare products manufacturing, wholesale and distribution of healthcare products. It also invests in health related/supporting industries, including education, ICT services, the management and administration of care facilities, as well as buildings, equipment and medical supplies.
According to their website, IFHA has 12 portfolio investments and €170 million (UGX708 billion) assets under management that include 40 clinics and 3 private hospitals.
Some of these portfolios include: AAR Holdings Limited (AAR)- the largest private healthcare insurance company in East Africa and AAR Health Care Holdings Limited, a leading medical service provider with health centers in East Africa and hospital operation in Kampala.
IFHA has also invested in CIEL Healthcare Limited (CHL) a wholly owned subsidiary of CIEL Limited, itself one of the leading industrial and investment groups in Mauritius with operations in numerous African and Asian countries.
CHL in June 2015 acquired a controlling stake in Dr Ian Clarke’s International Medical Group (IMG) that comprised of International Medical Centre (IMC)- a network of outpatient clinics throughout Uganda, International Hospital Kampala (Uganda’s largest private hospital), and IAA Healthcare, which provides medical insurance. IMG also includes International Medical Foundation (IMF), a charitable foundation, IMG Pharmaceuticals and the International Diagnostic Centre (IDC) which provides quality diagnostic services and wellness checks.
IFHA is funded by a mix of18 investors who include: The Netherlands Development Finance Company (FMO), Pfizer Inc, African Health Systems Management Company, International Finance Corporation (IFC), African Development Bank, European Investment Bank, Dutch Good Growth Fund, Achmea Pensioen- en Levensverzekeringen and Swiss Investment Fund for Emerging Markets.
Others include: Stichting Pensioenfonds ABP, the pension fund for government and education employees in the Netherlands and Stichting Social Investor Foundation for Africa (SIFA). Contributors to SIFA include: Achmea Holding N.V. is one of the largest suppliers of financial services in the Netherlands, ACHMEA, Aegon N.V- a multinational life insurance, pensions and asset management company headquartered in The Hague, SNS REAAL– a Dutch financial institution in insurance and banking which focuses on the private market and small to medium businesses as well as Heineken, Shell, and Unilever