EGYPT – The board of directors of Cairo Poultry Company, subsidiary of the Americana group, have approved the final offer submitted by Cairo 3A to acquire its stake in the Egyptian Starch and Glucose Company (ESGC).

ESGC is a public traded company, whose major shareholders are the Americana Group, leading Restaurants & Foods Company in MENA and its subsidiaries.

Cairo 3A being an integrated agri-commodity trader and manufacturer had submitted its initial offer in February to the three major shareholders of ESCS to acquire the company’s 91.5% stake valued at between LE  450-510 mn (US$28m – US$32m).

The offer included acquiring Americana Egypt’s 11.6 mn shares in the company, amounting to a 23.2% stake, Cairo Poultry’s 13.65 mn shares amounting to 27.3% stake and Americana Group’s  41% stake in the company.

Cairo Poultry has accepted to sell its 13.65 million shares for LE 8.54 per share. The company has further clarified that the final decision is still pending the approval of the ordinary general meeting (OGM) set to be held on May 5.

With the acceptance of the offer, Cairo 3A is set to submit a mandatory tender offer to the Egyptian Financial Regulatory Authority.

ESGC provides a broad portfolio of products for customers in the confectionary, dairy, meat, and beverage industries, as well as non-food markets such as paper, textile, and board manufacturing, in addition to the ruminant feed market.

They specialize in producing and marketing corn starch, glucose syrup, corn oil, gluten feed and meal.

On another note, Cairo Poultry recorded net profits after taxes of LE 116.9 million (US$7.4m) in 2019, compared to LE 147.62 million (US$9.3m) in 2018 while Americana Egypt’s net profits fell to EGP 13.37 million (US$0.84m) from EGP 29.46 million (US$1.8m) in 2018.

Cairo Poultry operates within the food, beverage & tobacco sector focusing on packaged foods & meats.