The Netherlands’ New Egypt Investment Fund BV is increasing its issued capital by $230m, commensurate with its new investments, according to a tender offer published on Saturday.
According to the tender: “The alliance purchasing a 20% stake in EFG-Hermes, and led by Naguib Sawiris and Beltone, has no intention of selling its acquired shares in the first year following the implementation of the tender offer.”
The offer mentioned the company is wholly owned — though indirectly — by the Sawiris family, and was founded in mid-December 2013 with issued capital of $1, in accordance with Dutch law. The company was set up for the purpose of advising and providing financing to companies and increasing companies’ capital.
Hermes is the largest investment bank in the Middle East and owns several companies and a stake in Credit Libanais. It operates in the markets of Egypt, Jordan, Lebanon and the GCC.
The Sawiris-Beltone alliance is looking to buy 20% of Hermes’ shares, but requires the alliance to buy from all shareholders who respond and offer shares, even it exceeds the 20% demanded.
The Financial Supervisory Authority (FSA) said earlier that Dutch company New Egypt, which belongs to Sawiris, is interested in the acquisition of a 17.82% stake in Hermes. Beltone Financial is offering to buy 1.09%, and Beltone Capital Holdings 1.09%, at a price of EGP 16 per share.
According to the offer, the purchase is being financed entirely from the alliance’s personal resources, and will not affect Hermes’ financial structure. The new company’s assets will not be used in financing the acquisition.
Beltone is one of the largest financial institutions in Egypt, with about 17 companies specialising in investment activities, asset management and securities underwriting and offerings. Its market value is EGP 216.6m, with Hermes’ market value on the stock exchange at EGP 8.063bn.
According to the purchase offer, the alliance does not intend to introduce any substantial amendments to Hermes’ management policies. That Beltone, one of the parties to the alliance, is part of the acquisition, contributes to growth in the Egyptian investment banking sector, according to those submitting the offer.
The value of the deal, should it be completed at its submitted value of EGP 16 per share, is EGP 1.835bn.
