(Photo Courtesy of Edita)
Edita foods industries signed two contracts with US company Hostess Brands LLC worth $12m, the company announced Monday, adding that the contract’s financing will be through a medium-term loan.
The first contract will extend the intellectual property rights for three Hostess products, to include 12 Arab countries. The extension will now include the six Gulf Cooperation Council (GCC) countries.
The second contract is for the purchase of property rights to technical knowledge for many of the North American company’s products. The usage of the acquired knowledge will be in several Arab countries, including Egypt.
The value of the loan will be EGP 90m, and will be provided by the National Bank of Kuwait (NBK) over the period of seven years.
Edita’s chairman will handle the negotiations with banks for necessary financing, the company highlighted.
On 12 April, Actis, the global emerging market private equity investor, announced that it has partially exited from Edita. In June 2013, Actis invested $102m for a 30% stake at a rate of $46.8 per share in Edita.
On 1 April, the initial public offering (IPO) of Egypt’s snack food maker was 4.5 times oversubscribed. The offer price has been set at EGP 18.50 per ordinary share and $12.28 per GDR, thus the market capitalisation of the company is EGP 6.7bn (approximately $891m).
Edita’s brand portfolio includes household names such as Molto, Todo, Hohos, Twinkies, Bake Rolz, Freska and MiMix.
