Orascom Financial Holding’s (OFH) board of directors announced on Tuesday selling its 56% stake in Beltone Financial to Chimera Investments in response to the Abu Dhabi-based investment firm’s mandatory offer for up to 90% of Beltone, the OFH said in a disclosure to the Egyptian Exchange (EGX).
Chimera offered EGP 1.485 per share in Beltone. OFH’s decision means Chimera’s acquisition bid will now automatically go through after passing the 51% minimum threshold. The OFH owns 259.12 million shares in Beltone.
Sources close to the deal told Daily News Egypt that the OFH’s board of directors decided last Monday to offer its shares in Beltone for sale next week, in response to the purchase offer from Chimera.
Meanwhile, the Beltone stock closed at EGP 1.67, an increase of about 14% over the offer price presented by Chimera.
The validity period of the offer extends for 10 working days, starting from 21 July trading session until the end of the 3 August trading session, provided that implementation will take place on the Egyptian Exchange within five working days after the offer period expires.
The Financial Regulatory Authority approved the purchase offer submitted by Chimera Capital, owned by Chimera Investment, for Beltone Financial.
The offer includes acquiring no less than 51% to 90% of Beltone shares at EGP 1.485 per share.
The company decided to submit the final offer as soon as the relevant internal and administrative approvals were obtained from the concerned authorities in Egypt and the UAE, and Matouk Bassiouny & Hennawy acts as the legal advisor to Chimera.
