The Financial Regulatory Authority (FRA) suspended on Monday the due diligence process by an investor alliance led by WM Consultancy on Beltone Financial Holding Company, until the authority decides on the non-binding offer submitted by Abu-Dhabi based Chimera Investments to acquire a controlling stake in Beltone. FRA’s decision came upon a request from Beltone on Sunday.
Chimera is bidding to acquire 51-90% of Beltone at an initial price of EGP 1.485 per share.
Last week, a consortium led by Cairo-based WM Consultancy put in its own offer to acquire a 51-90% stake in Beltone at EGP 1.35 per share.
WM Consultancy is led by former Beltone executive Wael Mahgary.
Press reports linked Mahgary to a number of names that previously had shares in Beltone Financial, including B Investments, a subsidiary of BPE Partners, run by businessmen Alaa Sabaa and Hazem Barakat. Both companies were launched by Beltone. The name soon changed after the acquisition offer by Billionaire Naguib Sawiris and Act Financial offered to take over the company before the latter’s final exit three years ago.
Sources close to B Investments confirmed to DNE that entering into an alliance to acquire Beltone Financial Holding was not presented to the Investment Committee or the company’s board of directors in the first place; however, it did not categorically deny negotiations with WM.
A source close to Compass Capital said: “We constantly receive investment offers, whether by entering into alliances or individually, and in the case of Beltone, we cannot currently confirm or deny entering into one of the alliances that are interested in the company.”
On the other hand, Chimera invested $100m in Gemini Global Development, a subsidiary of Ora Developers, owned by businessman Naguib Sawiris last December.
Chimera Capital, Matouk Bassiouny and El Hennawy’s office, has appointed a legal advisor to offer acquisition and due diligence on Beltone.
