Pre-Trading Thoughts

IDHC (FV: EGP22, OW) signed a sale and purchase agreement to acquire 50% of Islamabad Diagnostic Centre for a total consideration of USD72.35 million (EGP1.90/IDHC share). The transaction is expected to close in 1H2022. IDC contributes around 15% to the combined company’s consolidated revenue and consolidated EBITDA. Transaction should not impact dividend distribution plans for IDHC in 2022 and 2023. IDHC is trading at 2022 P/E of 9.0-10.0x and EV/EBITDA of 5.0x post transaction/consolidation...