Financial Regulatory Authority of Egypt approves Cairo 3A mandatory offer to acquire ESGC

EGYPT – The Egyptian Financial Regulatory Authority (FRA) has agreed to publish the mandatory tender offer (MTO) submitted by integrated agri-commodity trader and manufacturer, Cairo 3A for International Industries to acquire the Egyptian Starch and Glucose Company (ESGC).

ESGC is a public traded company, whose major shareholders are the Americana Group, Americana Egypt and Cairo Poultry.

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

FRA clarified in a statement that Cairo 3A’s MTO includes the purchase of up to 50.077 million shares, which represents 100% of the shares of the Egyptian starch and glucose capital, at a price of LE 8.61 per share.

“The period of validity of the compulsory purchase offer begins from the day following the date of the announcement of the offer, starting from Sunday, April 26 to the end of the trading session on Thursday, May 7,” it noted.

It pointed out that the minimum of the purchase offer is up to 25.5 million shares, representing 51 percent of the shares of the company targeted by the offer.

Earlier in April, the board of directors of Cairo Poultry Company approved the final offer submitted by Cairo 3A for International Industries to buy its company’s stake in the ESGC.

The company clarified that the final decision is still pending the approval of the ordinary general meeting (OGM) set to be held on May 5.

Cairo 3A has offered to buy Cairo Poultry’s stake, 13.65 million shares amounting to 27.3% stake for LE 8.54 per share, Americana Egypt’s 11.6 mn shares in the company, amounting to a 23.2% stake and Americana Group’s 41% stake in the company.

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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.

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