UAE-based B Investments closer to acquire 90% of Sawiris’ OFH

Ahram Online , Wednesday 13 Dec 2023

UAE-based company B Investments is inching closer to finalizing the acquisition of up to 90 percent of the Sawiris family's Orascom Financial Holding (OFH), which is valued at EGP 4.25 billion ($137.51 million), via share swap, after the conclusion of the fair value (FV) report, according to a bourse filing on Wednesday.

Samih Onsi Sawiris, a major shareholder in B Investments.
Samih Onsi Sawiris, a major shareholder in B Investments. Wikipedia.


The FV report, conducted by an auditor from Grant Thornton Egypt, valued OFH’s stock at EGP 0.44 and B Investments’ stock at EGP 22.73.

The report changed the share swap ratio to 51.15 of OFH’s shares for each of B Investments’ shares from the previous 56.76/1 ratio. A share swap is an agreement between two companies where they exchange shares in each other's companies.

The deal is still pending approval from regulatory authorities including the Financial Regulatory Authority (FRA), the Egyptian Exchange (EGX), and Misr Clearing, Depository and Central Registry Company (MCDR).

The number of OFH’s listed shares amounts to 5.24 billion, of which 524.57 million shares are excluded from the deal due to being treasury stocks. Treasury stocks are the previously issued, outstanding shares of stock which a company repurchased or bought back from shareholders. The reacquired shares are then held by the company for its disposition.

The main shareholder in OFH (51.6 percent) is OTMT Acquisition company, which was established in Luxembourg by the Sawiris family.

The largest shareholders in B Investments are UAE's RIMCO Investments (10.6 percent), Samih Onsi Sawiris (9.2 percent), European Investment Bank (6.5 percent) and Saudi Rolaco EGB Investment (5.2 percent).

At Tuesday’s close, OFH's stock reached a value of EGP 0.34 while B Investments' hit EGP 19.91.

In June, OFH received a mandatory tender offer (MTO) for up to 90 percent of its shares from investment management firm B Investments. MTOs are required for the acquisition of 30 percent (or more) of a company at a certain price.

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