African markets

An Egyptian consortium from the Gulf acquires 89% of the shares of Domty

OPR screens revealed on Wednesday that around 97% of target stocks had responded to an offer from Expedition on Arab food industries (Domty) of 93 million shares out of approximately 96.18 million shares in recent tender offering sessions, representing approximately 32% of the company’s total equity.

This brings Expedition’s total contribution to Domty’s capital to 89%.

The total value of the acquired 32% stake will be approximately EGP 511.5 million at a price of EGP 5.5 per share after the company raised the price of the tender offer before the end of the takeover bid in five sessions after the issuance of the fair value was estimated at EGP 6.90 per share.

Expedition Investments’ offer seeks to acquire up to 96.18 million shares at a rate of 34%, completing 90% of Domty’s shares.

Informed sources told Daily News Egypt (DNE) that Expedition Investments is a company established under the laws of the State of Mauritius which is owned by a number of Egyptian, Saudi and Emirati investors, and its aim is to acquire a 34% stake. to Domty — one of the biggest players in Egypt’s dairy sector, which controls more than 43% of the country’s cheese production market.

The sources pointed out that the target of 90% of the offer includes a contribution from Al-Damaty after the acquisition, which will increase to more than the current 56% by a small amount of up to 10% of Domty’s capital indirectly. through Expedition, while the remaining 11% of the company will be freely traded shares to ensure the company’s continued listing on the stock exchange.

Domty CEO Mohamed Al-Damaty said on his Facebook page that he has increased his family’s stake in the company thanks to the offer of the strength and solvency of the company and the strength of the market. Egyptian, stressing that there was no intention to cancel the company. listing on the Egyptian Stock Exchange (EGX).

Al-Damaty added that the company is continuing with its expansion plans and meeting its targets, pointing to promising market opportunities despite the economic difficulties.

Domty posted profits amounting to EGP 111.1 million in H1 2022, compared to losses of EGP 32.55 million in H1 2021.

The company’s sales also increased to EGP 2.27 billion from sales of EGP 1.32 billion.

Daily News Egypt