Billionaire Naguib Sawiris and Beltone Financial Holding are studying the purchase of a 9.5 percent stake in EFG-Hermes Holding SAE, after attempts to buy more than twice that holding failed.
Owners of about 54.4 million EFG-Hermes shares agreed to sell by market close today in Cairo, well below the 114.7 million Sawiris and Beltone sought, according to the Egyptian Exchange. EFG-Hermes rose 1.1 percent to 15.42 Egyptian pounds, taking its increase since the deal was announced on June 5 to 17 percent. The joint bid, for which a 10 business-day implementation period expired today, was for 16 pounds a share.
Sawiris and Beltone must seek additional regulatory approval if they decide to buy out the EFG-Hermes holders who accepted their offer, Osama Rashad, head of Beltone investor relations, said by phone today. Sawiris, who has sold most of his telecommunication assets in the North African country since the start of political unrest in 2011, is trying to make good on a promise to reinvest in Egypt after the military seized power from Islamists a year ago. He didn’t respond to a call and a text message seeking comment today.
“For Sawiris and Beltone, a 9.5 percent stake may be viewed as an accomplishment,” Hany Genena, head of research at Cairo-based Pharos Holding, said by phone. “They have an opportunity to buy the stock at a relatively attractive price and they can always try to buy more at a later stage.”
Photographer: Simon Dawson/Bloomberg
Billionaire Naguib Sawiris, who has sold most of his telecommunication assets in the... Read More
EFG-Hermes said last month that HC Securities & Investment, an independent adviser it hired to price its stock, arrived at a valuation of 22.93 pounds. Shareholders had rejected a takeover offer from a group of investors led by Sawiris in 2012 in favor of another from Qatar’s QInvest LLC, a deal that ultimately failed to receive approval from Egypt’s financial regulator.
