File photo of a Bisco Misr's shop (Photo: Courtesy of Bisco Misr Facebook page)
Majority shareholders in Egyptian confectionary maker Bisco Misr have opted to sell their stake to Kellogg Co., after it made a higher offer than that of an Emirates-based company.
Kellogg made an acquisition offer on at least 51 percent of the company's shares, if not all of it, for the price of LE79 per share, Egypt's financial regulator announced on Thursday.
Owners of 56 percent of Bisco Misr said that they had agreed to the offer from the world-famous cereal maker after being notified of it on Wednesday evening.
The majority shareholders had agreed earlier this month to sell their stake to UAE-based Abraaj Investment Management, which offered LE73.91 per share, also for at least 51 percent equity.
Egypt's financial regulator said it was studying the Kellogg offer, which offered LE908.5 million ($127.2m) for the entirety of Bisco Misr.
Earlier this week Abraaj announced receiving regulatory approval for its LE850 million ($119m) acquisition offer.
Founded in 1957, the confectionary maker produces over 90 kinds of biscuits and cakes, with one facility in Cairo and two in second Egypt's largest city Alexandria.
Bisco Misr recorded a net profit of LE37.4 million in the first nine months of 2014, down 16 percent from LE44.4 million in the same period of the previous year.
The snack maker’s net profit for the financial year ended in December 2013 was LE62.7 million, up from LE41.4 million in the previous year.