Kellogg buys greater stake in the Egyptian biscuit maker – sources
The US Kellogg’s grip on Egypt-based biscuit maker Bisco Misr has become firmer after buying Misr Insurance Company’s 3.84 percent stake in the Egyptian company, sources with knowledge of the matter told Amwal Al Ghad.
In a statement released Sunday to Cairo bourse, Bisco Misr announced that one of its shareholders, Misr Insurance had sold its 3.84% stake, which is equivalent to 441,000 shares for 39.688 million Egyptian pounds (US$50.7 million) but without revealing the buyer’s name. The transaction average selling price was 89.86 pounds per share.
In January, Kellogg had become a controlling shareholder following its takeover of 85.93 percent of Bisco Misr, equivalent for 9.88 million shares, for a total of US$124.2 million. At that time, Kellogg said it had indicated it was willing to buy 100 percent of Bisco Misr and would only accept a controlling stake.
Headquartered in Cairo, Bisco Misr is one of the most recognized baked goods companies in Egypt; it offers such highly popular brands as Bisco Luxe, Chico Chico and Bisco Wafers. With approximately 3,300 employees and three manufacturing facilities, Bisco Misr has a strong history in the Egyptian market dating back to 1957.
Other shareholders in the company include Misr Life Insurance with 3.17% of shares, whereby the rest (1.96%) belong to other individual shareholders.
