The Clap:
The Financial Regulatory Authority has granted Abu Dhabi-based Electra Investment Holding approval to snap up between a 15%-24.50% stake in Elsewedy Electric at USD 1.05 (EGP 49.58) per share, a statement to the Financial Regulatory Authority read.
Significance:
Electra’s bid marks an 11.37% premium to Elsewedy Electric’s share price of EGP 44.51 (USD 0.94) at market close before the weekend, Enterprise notes. If Electra acquires the full 24.5% stake in Elsewedy,the transaction would be valued at USD 558.4 million, according to the news outlet.
So what:
The EGX-listed firm’s shares surged 0.47% to EGP 44.51 apiece at market close on news of the plan.
Validity period:
Twenty business days starting from the trading session of June 2, 2024 until the end of the trading session of July 9, 2024.
Next steps:
The Egyptian company’s board of directors will convene on Wednesday to assess the bid and will select an independent financial advisor to complete a valuation of Elsewedy Electric, Asharq Business wrote. Elsewedy needs to appoint its advisor within the next two weeks.
Remember:
The Elsewedy family holds approximately 68.1% of the company’s listed shares, with the remaining stakes owned by investment funds, financial portfolios, and small scale investors in the bourse.
