CI Capital has rejected an offer by Banque Misr to acquire a 90 percent stake in the company. The offer was to acquire up to 652,800 shares for 4.7 Egyptian pounds a piece valuing it at some 4.7 billion pounds ($298.7 million).
Yet, the company’s board of directors said that the offer was too far below the valuation reached by its financial advisor Baker-Tilly Wahid Abdel Ghaffar & Co, according to a bourse disclosure.
The study conducted by Baker Tilly Wahid Abdel Ghaffar & Co showed that the stock’s fair value (FV) is estimated at 5.73 pounds.
Banque Misr currently owns a 24.7 percent stake in the financial services firm and now wants to purchase an additional 653 million shares, giving it 90 percent ownership.
CI is asking the bank to raise its offer price by 19 percent to 5.60 pounds if it wants to acquire a 90 percent stake.
However, in February, the bank said that it would not amend its offer to acquire CI Capital.