Abraaj divests Turkish health insurance business

The Dubai-based firm has agreed to sell its stake in a Turkish health insurance business after investing in the company in 2007.

Emerging market firm Abraaj Group has sold its 50 percent stake in Turkish health insurance business Acibadem Sigorta to Khazanah Nasional Berhad, a strategic investment fund from the government of Malaysia, according to a statement. 

Financial details of the transaction, which is subject to regulatory approval, were not disclosed, but Bloomberg reported the deal was $252 million.

At press time, Abraaj was unavailable to comment beyond the statement. 

Acibadem Sigorta, which provides health insurance services to corporate and individual clients in Turkey, grew significantly under Abraaj’s ownership. 

Net income grew to TL 27.9 million in 2012 (€11 million, $14.5 million) from TL 1 million (€390.000, $520.000) in 2010. The improved profitability was partly driven by efficiency measures one of which is on the management of operating expenses. 

“The successful outcome of this transaction demonstrates our continued track record of investing in quality assets in growth markets to generate significant and attractive returns,”  Selçuk Yorgancioglu, partner and region head of central Asia and Turkey at Abraaj, said in the statement. 

Abraaj invested in Acibadem Sigorta in 2007, when it teamed up with Mehmet Ali Aydinlar, chairman and chief executive of Acibadem Healthcare. In January2012, Abraaj sold its shareholding in Acibadem Healthcare to IHH Healthcare Berhad and Khazanah Nasional Berhad in exchange for cash and shares in IHH. It retained its 50 percent stake in Acibadem Sigorta. In July 2012, Abraaj sold its stake in IHH through an IPO, which raised $2 billion. 

Abraaj received financial advice from Lazard and Raiffeisen Investment. Freshfields Bruckhaus Deringer and Kingstellar acted as legal adviser.