EGX 30 Sinks 1.63%, Ends Below 5100 Pts On Orascom Telecom’s Takeover Offer

The Egyptian Exchange (EGX) has ended Sunday’s trading incurring more losses of EGP 3.85 billion driven by non-Arab foreign selling pressures amid the announcement of a tender offer to buy 100% of Orascom Telecom Holding (ORTE.CA).

The capital market has reached to EGP 354.949 billion during Sunday’s closing session.

The EGX indices closed in dark red notes following the tender offer announcement.

Egypt’s benchmark index EGX30 pushed down by 1.63% to close at 5098.82 p; while EGX20 tumbled by 1.76% to end at 5856.47 p.

Meanwhile, the mid- and small-cap index, the EGX70 fell by 1.41% to conclude at 441.47 p.  Price index EGX100 inched down by 1.51% to finish at 737.3 p.

During Sunday’s closing, the trading volume hit 85.115 million securities, higher than Thursday’s 84.888 million securities, representing an increase of 227 securities. For the traded value, it reached EGP 220.956 million, exchanged 15.181 thousand transactions.

This was after trading in 174 listed securities; 130 declined, 13 advanced; while 31 keeping their previous levels.

The non-Arab foreigners were net sellers seizing 11.49% of the total markets, with a net equity of EGP 7.097 million, excluding the deals.

Meanwhile, Egyptian and Arab investors were net buyers seizing 82.69% and 5.81% respectively, of the total markets, with a net equity of EGP 5.326 million and EGP 1.770 million excluding the deals.

Cypriot Tender Offer:

Egypt’s financial regulator announced on Sunday that  Baskendal Ltd – a company founded in the State of Cyprushas deposited an offer to buy up to 100% of Orascom Telecom Holding (OTH)(ORTE.CA) at a price of $0.70  per share.

Baskendal Ltd is a subsidiary wholly owned by  Altimo – owner of 47.85% stake in VimpelCom Limited (the parent company of Orascom Telecom).

 The Egyptian Financial Supervisory Authority (EFSA) further declared that the offer is up to  5,245,690,620 shares, representing 100% of the shares of Orascom Telecom Holding price 0.70 dollars per share to be paid as follows :

(a) In Egyptian pounds, according to the exchange rate announced by the Central Bank of Egypt two working days before the date of the purchased shares settlement process for ordinary  shareholders or (b) In U.S. dollar for GDRs shareholders .

The Egyptian Exchange (EGX) decided to resume trading on the shares of the company from 12 :15 p.m. (10:15 GMT) of the trading session today, 31March 2012, while  suspending bids and asks on the company’s shares before the publication of this announcement.