Hygeia Diagnostic & Therapeutic SA, a Greek hospital operator, said its board approved the sale of a 50 percent stake in Genesis Holdings SA, which owns Safak Group’s four hospitals in Turkey, for $22 million.
Hygeia still owns Safak and the sale to the Ozturk family gives it full control of Genesis and its four hospitals in Turkey.
Hygeia said the sale will strengthen the position of Safak’s remaining hospitals in Cyprus, Greece and Albania, and allow it to seek investments in southeast Europe, Areti Souvatzoglou, Hygeia’s chief executive officer, said in an Athens bourse filing today.
The sale is expected to lower consolidated net debt by 15 million euros ($20 million), according to the filing.
The Ozturk family will acquire the 50 percent it doesn’t already own pending approval from Turkey’s Competition Board.
Hygeia’s operating profit will be “positively” affected as Hygeia incurred 7 million euros of losses from the investment in 2010 and was forecasting a higher loss this year.
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