McKay & Company Advocates (McKay) has advised The Metro Group PLC (TMG) in its acquisition of majority shareholding in Metropolitan Hospital Holdings Limited (MHHL) in a transaction valued at over ten million united states dollars. The transaction involved the acquisition by TMG of shares held by the Evercare Group bringing TMG’s shareholding stake in MHHL to 96.7%.
MHHL is the holding company that owns Metropolitan Hospital and Ladnan Hospital, both based in Nairobi. The acquisition gives TMG effective control over both hospitals and allows TMG to continue its founding vision of delivering high quality and affordable healthcare services and promoting a shared value model for all its stakeholders.
McKay advised TMG on the transaction agreements, regulatory matters, the fulfilment of all the conditions precedent to completion of the transaction and provided support on all completion formalities for the successful closure of the transaction.
TMG is a public company that was founded by a group of young healthcare professionals in 1994 as Metropolitan Health Services. The founders subsequently sold shares in the company to the public putting the shareholding of TMG at over 500 shareholders currently. TMG’s flagship project is the 160-bed capacity Metropolitan Hospital.
The Evercare Group had invested in both Metropolitan Hospital and Ladnan Hospital with TMG becoming a minority co-investor in the two hospitals through its shareholding in MHHL. Following the completion of this transaction, TMG now has majority shareholding following a decision by the Evercare Group to exit from MHHL in line with typical exits by private equity investors and followed a period of commendable success by both Metropolitan Hospital and Ladnan Hospital.
Besides its investment in healthcare, TMG also has significant investments in real estate and in the financial services sector.
McKay’s legal team on the transaction was led by Charles Kyengo supported by Peter Oiboo Morintat, Eva Wanja, David Sarinke and Patricia Lelei. Resolute Business Advisory Limited provided tax advice to TMG on the transaction.
Debevoise & Plimpton LLP as international legal counsel, Bowmans LLP as local Kenyan counsel and I&M Burbidge and Nedbank as joint financial advisors advised the Evercare Group on the transaction.