Al Borg Laboratories, one of the largest medical testing group in the Middle East, said it has finalized the voluntary delisting of its shares from the Egyptian Stock Exchange (EGX) and has become a private joint stock company.

As per the rules and regulations of EGX and the Egyptian Financial Supervisory Authority governing voluntary de-listings, Al Bord offered to buy all minority shareholders (15 per cent of shares) at the highest traded price of EGP149.44 per share in the thirty days preceding the meeting of the company’s board of directors, the company said in a statement.

The board had earlier called for the extraordinary general meeting of shareholders for approval of the delisting and minorities representing approximately 5.5 per cent of shares outstanding responded and participated in the offer at a total cost to Al Borg of approximately EGP 33.5 million and financed by company excess cash balances, it stated.

Post cancelation of the acquired shares, Abraaj’s shareholding in the company, through its Infrastructure and Growth Capital Fund (IGCF), would reach roughly 90 per cent up from 76.9 per cent at the time of initial acquisition in May 2008 and subsequent share buy-backs conducted in 2009 which lifted Abraaj’s stake to 84.9 per cent, the company added.

While under no legal obligation to do so, the company will from time to time reach out to the remaining minority shareholders seeking to exit and provide them with a liquidity event in privately negotiated transactions, said a top official.

Commenting on the delisting, Ahmed Badreldin, executive director at Abraaj Capital, the majority shareholder of Al Borg Laboratories through IGCF, said “The voluntary delisting constitutes another step in our strategy of increasing the ownership stake through Abraaj’s Fund from roughly 77 per cent in 2008 to around 90 per cent currently, while returning cash to public shareholders that tendered their shares in the share buybacks and delisting over the last 2 years.”

Al Borg, established in 1991, is currently one of the largest private medical laboratory chains in the Middle East with over 1,100 employees in 90 branches spread across Egypt.-TradeArabia News Service