Abraaj Group To Acquire 2 Egyptian Companies

Abraaj Capital, today announced an agreement to acquire two Egyptian companies listed in Egyptian stock market.

Cairo for Investment and Real Estate Development (CIRA) announced that Abraaj group has made a Mandatory tender offer to acquire 100% of its shares at a price per share not exceeding EGP 20.5.

The company added that an initial agreement has been signed through Huxley holding Ltd which is owned by funds owned by Abraaj, with the shareholders representing the controlling stake in the Cairo for investment and real estate development.

Abraaj also confirmed that it has signed, through Huxley Holdings Ltd a limited liability company incorporated in Malta and owned by Funds advised by Abraaj, an agreement with shareholders representing a controlling stake  of Cairo for Investment and Real Estate Development , a leading education group, outlining the intent: (i) for Huxley to issue a mandatory tender offer on the Egyptian Stock Exchange  to acquire 100% of the shares of the Company at a price per share not exceeding EGP 20.5, (ii) for the Promoters not to tender their shares in the MTO and to transfer their ownership to a special purpose vehicle owned by the Promoters, and (iii) post completion of the MTO the Company shall initiate a capital raise process for EGP 100m to which Huxley shall subscribe in full. The capital injection will be used to fund investments in the education sector in Egypt.

Abrraj added in a release at its web site that the completion of the proposed transaction shall be subject to, among others, finalizing negotiations, obtaining the necessary regulatory approvals including that of the Egyptian Financial Supervisory Authority (“EFSA”) pursuant to the Egyptian Capital Market Law , and the approvals of the International Finance Corporation pursuant to its agreements with the Company. A disclosure of the above has been made to the Egyptian Stock Exchange by the Company on 23rd February 2014 .

In accordance with the CML, Abraaj is required, by not later than 60 business days from the Disclosure, to either submit the tender offer file to the Egyptian Financial Supervisory Authority (“EFSA”) for approval or announce that it does not intend to make an offer. There is no certainty that any offer will be made.

In another statement, Cairo Medical Center (MEDC) announced that it received an offer from Creed Healthcare Ltd owned by funds that is owned by Abraaj group to acquire 100% of its shares at a price per share not exceeding EGP 75.

Abraaj also confirmed that certain shareholders of Cairo Medical Center have signed irrevocable undertakings to sell their shares amounting to 41.98%  at a price per share of EGP 75 to Creed Healthcare Ltd, a limited liability company incorporated in Malta and owned by Funds advised by Abraaj, upon completion of limited due diligence on the Company that is satisfactory to the Group and obtaining the necessary regulatory approvals.

As the Sale Shares exceed one third of the share capital of the Company, Abraaj would be required,  pursuant to the Egyptian Capital Market Law, to launch a mandatory  tender offer for up to 100% of the shares of the Company. A disclosure of the above has been made to the Egyptian Stock Exchange by the Company on 23rd February 2014.

In accordance with the CML, Abraaj is required, by not later than 60 business days from the Disclosure, to either submit the tender offer file to the Egyptian Financial Supervisory Authority (“EFSA”) for approval or announce that it does not intend to make an offer, and the irrevocable undertakings lapse. There is no certainty that any offer will be made.

Source: Press releases & Arab Finance