The Monetary Regulatory Authority (FRA) has agreed to publish an commercial for a compulsory buy provide submitted by Expedition Investments to buy as much as 96.18m shares — or 34% — of Arab Meals Industries (Domty) at EGP 5 per share.
The acquisition is predicted to enrich the shares Expedition Investments already owns in Domty, elevating its stake within the firm to 90%.
The FRA obligated the offeror to purchase all of the shares supplied on the market in response to the acquisition provide, taking into account that if the shares supplied on the market exceed the variety of shares required to be bought, the offeror will buy from all share house owners who responded to the provide within the ratio of the sum of what was supplied.
The FRA famous that its approval to publish the provide just isn’t a dependence on the business and funding feasibility of the acquisition provide or any concluded procedures, agreements, or selections to be taken by the offeror, and the authority doesn’t intrude in figuring out the value of the acquisition provide.
Moreover, knowledgeable sources instructed Day by day Information Egypt that Expedition Investments is an organization established in response to the legal guidelines of the State of Mauritius that’s owned by numerous Egyptian, Saudi, and Emirati traders, and its objective is to accumulate a 34% stake in Domty — one of many largest gamers within the Egyptian cheese sector — which controls a share exceeding 43% of the cheese manufacturing market.
The sources additionally indicated that 90% of the goal share of the provide features a contribution from Al-Damaty after the acquisition, which can rise to greater than the present 56% by a small quantity of Domty’s capital not directly by way of Expedition, whereas 10% of the corporate will stay as free-trading shares to make sure the continuation of the corporate’s itemizing on the Egyptian Trade.
The sources anticipate that the deal will probably be concluded by the tip of subsequent August, and that the Egyptian market would quickly witness nice exercise by way of mergers and acquisitions.
Domty turned a revenue of EGP 111.1m within the first half (1H) of 2022, in comparison with 1H 2021’s web lack of EGP 32.6m.
The corporate’s gross sales additionally elevated to EGP 2.27bn, up from EGP 1.32bn.