ACIBADEM AND ORKA HOLDING BOUGHT TOKUDA

Orka Holding via Acibadem Sistina Hospital, together with the Turkish healthcare giant Acibadem signed an Agreement today for purchasing the largest private healthcare institution in Bulgaria, the Japanese Hospital Tokuda along with its subsidiaries (Tokuda Group). The two partners signed a Merger Agreement with City Clinic as well, which is the second healthcareprovider in Bulgaria, with three hospitals and three outpatient centers.

As a result of the Tokuda transaction, the companies took over 100 percent of Tokuda Group’s shares, while the City Clinic transaction is a combination of taking almost one third of the existing shareholders’ shares and the modification of the operational partners’s shares in the new combined entity. After the transaction, 76.5 percent of the newly formed holding’sshares (SPV) belong to Acibadem and Orka Holding (via Acibadem Sistina) and 23.5 percent belong to the City Clinic’s shareholders.

The value of the transaction and the newly created company is 125 millionEuros.

City Clinic, which was founded in 2010, is one of the leading high–quality providers of integrated healthcare services in Bulgaria, operating in Sofia, Varna and Burgas. It disposes of three hospitals and three outpatient centers, including the only hospital in Bulgaria accredited by the International Commission on Accreditation (JCI). After opening the new cancer center, City Clinic dominates the cardiovascular care and cancer care market in the country. The City Clinic Hospital in Sofia is a university clinic of two of the leading medical schools in the country, which combine high-quality clinical services, education and research.

Tokuda Clinical Hospital, which is located in Sofia, covers 52,000 square meters and additional space of 27.600 square meters. The hospital offers 550 beds, 37 clinics, 3 surgical wards and 22 operating theaters. Since its establishment in 2006, the hospital has had 386,000 patients and performs more than 13,000 operations annually.

Tokuda Group is the largest private healthcareprovider in Bulgaria, including a general hospital with 550 beds, outpatient medical center, clinical research center, pharmacy and nursing home, all located at a single location in Sofia. The hospital was established in 2006 as the first private hospital in Bulgaria, owned by а foreign investor with 100% Japanese capital. The modern facility of 52,000 square meters is located in the southern part of Sofia, at Lozenec district.Tokuda Hospital functions as a multidisciplinary service, providing almost all medical disciplines. It disposes of more than 30 medical departments and 22 operating theaters.

“With an ongoing commitment to quality and modern health we have raised the healthcare standards in Macedonia. Following the global developments and trends in providing up-to-date patient care, we will continue to be set examplefor the best clinical hospital in Macedonia and starting from today we will strive to achieve those accomplishments in Bulgaria as well”, announced the CEO of Orka Holding, Mr. Jordan Kamchev. He also said that the strategy of Acibadem and Orka Holding includes establishing four hospitals in the Balkanswithin two years.

Both transactions will lead to the formation of the largest private healthcare provider in Bulgaria and one of the leading healthcare institutions in Central and Eastern Europe. This will strengthen the global brand Acibadem, the clinical and operational excellence and know-how, the Tokuda and City Clinic market positions, the high-quality services and reputation. Such combined, integrated healthcare group will operate under the name Acibadem City Clinic, with Mr. Mehmet Ali Aydınlar as the President of the BOD and Ilian Grigorov as the CEO.

Mr. Mehmet Ali Aydınlar, President and CEO of Acibadem stated“The transaction is in compliance with Acibadem’sStrategy to focus on key emerging economies in Central and Eastern Europe and the Balkan region. Acibadem perceived the need for qualified healthcare services provided with the help of state-of-the art equipment in Bulgaria and for that purpose realized this important transaction. With reference to the globally acknowledged brand Acibadem, well-designed clinical processes, sophisticated management and operational approaches; Bulgaria will be the country that provides first-class and worldwide healthcare services through these four hospitals, which will become the center of attention in the region”.

Mr. Arthur Stern, a representative of Tokushukai Medical Group, said “Tokuda, MD is extremely proud of Tokuda Sofia Hospital’s leadership since its establishment 10 years ago up until today. The succession of Acibadem via its proven experience will provide this hospital an opportunity to continue with the leading role aimed at providing the highest international standards of patient care”.

Mr. Ilian Grigorov, CEO of City Clinic, announced“This transaction is a recognition of the tremendous efforts of doctors, nurses, healthcare workers and other staff of City Clinic who worked hard and will continue to do so in the best interest for the patients in Bulgaria. We will continue to enable the highest quality standards of healthcare services via significant synergies and support from Acibadem Healthcare Group”.

Globally,the transaction increases Acibadem’s beds to more than 3,500 in 22 hospitals and in 3 countries. In expectation of necessary approvals and fulfillment of certain conditions, the deal is expected to close within 3 months. Deloitte acted as financial and tax advisor for the transactionof Acibadem and Orka Holding. The legal counsel of Acibadem and Orka Holding who led thetransaction is Esin Attorney Partnership, a member company of Baker & McKenzie International Swiss Verein and the local legal counsel is Djingov Gouginski Kyutchukov Velichkov (DGKV). Ernst & Young acted as financial and tax advisers of Tokuda Groupand its shareholders. The legal advisers of Tokuda Group for the takeoverare Braykov and Patton Boggs (UK) LLP Legal Affairs Office. Dentons and DGKV also acted as legal advisors of City Clinic Group and its shareholders.

Acibadem Healthcare Group

Acıbadem Sağlık Hizmetleri ve Ticaret A.Ş. (https://www.acibadem.com/en/) is the leading private provider of diagnosis and treatment in Turkey since 1991. Acibadem has 18 general hospitals (1 in Macedonia), Management Agreement for 1 hospital in Iraq, 13 outpatient clinics and service support companies, and a team of over 18,000 employees and 3,100 doctors.

The consistent growth since its establishment made Acibadem the most renowned and most significant brand in the Turkish healthcare sector, as well as an internationally known and recognized name. In 2012, Acibadem became part of a larger global network known as IHH Healthcare Behard.

IHH (https://www.ihhhealthcare.com/about-overview.php) leads an integrated business for healthcare and related services and has a leading position in its domestic markets in Singapore, Malaysia and Turkey, as well as investments in the People’s Republic of China (excluding Hong Kong, Macao and Taiwan), India, Hong Kong, Vietnam, Macedonia (via Acibadem), Brunei and United Arab Emirates. IHH Healthcare Berhad is listed on the main Bursa Malaysia Securities Berhad (Bursa Securities) stock exchange markets, and Singapore Exchange Securities Trading Limited ( “SGX-ST”)stock market and is the second largest healthcare provider in the world by market capitalization.

Acibadem Sistina

The success of Acibadem Sistina (https://acibademsistina.mk/mk) in the healthcare sector is due to the mission to create a private healthcare system as of the most developed countries in the world that position our country as a destination with impeccable clinical services. The impressive number of 254.000 registered patients for the past six years, and the continuous success in patient treatment at Acibadem Sistina Hospital is the greatest evidence that the company has reached the leading standards in health and health care practice.

As a confirmation of the highest standards implementation in global health, based on the most rigorous criteria inhealth care achievements, at the end of April Acibadem Sistina Hospital is expected to receive accreditation by the International Accreditation Commission, Joint Commission International (JCI), which would be the only one in Macedonia. This accreditation indicatesofficial positioning of Acibadem Sistina at the top of the international healthcare system. The commission’s quality seal will indicatea recognition of the hospital – primacy in the region and in Europe, which sets new and high quality guidance in healthcare practice.

MORE INFORMATION ABOUT TOKUDA https://www.tokudabolnica.bg

MORE INFORMATION ABOUT CITY CLINIC https://cityclinic.bg/en