CAIRO: The Kuwaiti Watheeqa Group has offered to buy an additional 5 million shares in Egypt s Raya to help fend off a takeover by Orascom Telecom, Raya Chairman Medhat Khalil said on Monday. Orascom Telecom (OT), a regional mobile operator, offered to buy the technology and communications firm in mid-July for LE 12 per share or LE 684 million ($121.1 million) in total, but Raya says the price is too low. Khalil said Watheeqa, which already owns 10 percent of the company, will buy the extra 8.8 percent at the market price from the more than 55 percent of Raya shares which are free floating. The move still needs approval from the Capital Market Authority. Many shareholders and independent parties are keen to support us against this hostile takeover. This will not be the last initiative in this direction, he added. Shareholders other than Watheeqa include Medhat Khalil s family with 4.1 percent of the shares, Financial Holdings with 12, the El-Tawil family with 8.8 percent and Suliman Aba-Numay with 9.6 percent of shares. The move will give large shareholders more control of the company and sends a message that the market price is good, Khalil said. Shares in Raya closed 1.9 percent lower on Monday at LE 13, which is LE 1 higher than the Orascom offer, after reaching a year high of LE 13.83 on Thursday. Last May HC Securities recommended a buy rating on the stock and a price target of LE 14.90 on expectations of growth in the coming five years. Raya said last week it will appoint a financial consultant to study the offer and Khalil said the name will be announced on Tuesday. But the majority of shareholders are determined not to sell at this price especially as it negatively affected Raya s partnership with Vodafone Egypt, putting more cooperation on hold, he said. Vodafone Egypt has a strategic partnership agreement with Raya, whose retail shops exclusively sell the mobile operator s services and products. In March, it bought Raya s stake in its subsidiary Raya Telecom for LE 93.6 million after buying 51 percent of it in October 2006. Raya operates in the mobile phone distribution, IT services and call center business. It has a paid-in capital of LE 285 million and some LE 57 million shares at issue.Reuters
Watheeqa buys more Raya shares to counter OT offer
