IFC acquires 54.23 per cent stake in AAR

A consortium led by the International Finance Corporation (IFC) is expected to acquire a 54.23 per cent stake in AAR Healthcare Holdings, the operator of hospitals and clinics in Uganda and other East Africa countries.

The acquisition, according Kenya-based Business Daily, has already been approved by the Kenyan authorities and the transaction is expected to cost the IFC-led consortium more than Shs54b.

“The, Authority [Competition Authority of Kenya] approved the proposed acquisition of 54.23 per cent of issued shares from AAR Health Care Holdings by Hospital Holding Limited unconditionally,” a notice issued by Competition Authority of Kenya reads in part.

The acquisition, according to Competition Authority of Kenya, will see additional investment in AAR besides retaining its current workforce.

The acquisition will be conducted under Hospital Holdings Limited by IFC, Swedfund, Sweden state-owned investment company and other private entities.

The deal follows IFC’s November 2019 announcement that it had partnered with private investors to raise a total of Shs414b to buy significant stakes in health facilities in Kenya and Tanzania.

IFC in 2013 made an individual $4m equity investment in AAR Healthcare when it operated 28 clinics across the three markets.

AAR is an operational holding company which owns and operates 40 primary care clinics in East Africa and a hospital in Uganda.

In a statement, IFC said its investment in AAR had been motivated by the growing trend towards private health care in Africa.

“World Bank Group studies show that 50 per cent of health expenditure in sub-Saharan Africa is financed by out-of-pocket payments from individuals,” the IFC statement reads in part.