The Clap:
Abu Dhabi-based Electra Investment Holding began snapping up shares in Elsewedy Electric at USD 1.05 (EGP 49.58) per share and will continue acquiring stakes through to 9 July, a statement to the Financial Regulatory Authority read.
Remember:
The FRA okayed last week the Emirati company’s bid to snap up between a 15%-24.50% stake in the EGX-listed firm. The EGX-listed firm’s shares surged 0.47% to EGP 44.51 apiece at market close Thursday on news of the FRA’s approval.
A large markup:
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. If Electra acquires the full 24.5% stake in Elsewedy,the transaction would be valued at USD 558.4 million, according to Enterprise.
Counsel:
EFG Hermes is acting as Electra Investment’s only financial advisor, while MHR & Partners as well as White & Case are the Emirati firm’s legal advisors. Meanwhile BDO Keys Financial Consulting will prepare a valuation of Elsewedy Electric ahead of the full transaction.
