Prime Capital, the investment banking division of Prime Holdings, has concluded its role as an independent financial advisor by determining the fair value of Orascom Financial Holding and B Investments. This evaluation is integral to calculating the share exchange ratio as part of B Investments’ proposal to acquire a stake of up to 90% in Orascom Financial Holding via a share swap.
B Investments extended a binding offer to purchase approximately 4.249 billion shares, which constitutes up to 90% of Orascom Financial Holding’s issued share capital, with a stipulated minimum acceptance threshold of 51%. The proposed exchange rate was set at 1 B Investments share for every 56.76 Orascom Financial Holding shares. The Financial Regulatory Authority sanctioned this offer on 27 February.
The appraisal determined Orascom Financial Holding’s share value at EGP 0.43, utilizing the adjusted net asset value approach, while B Investments’ shares were valued at EGP 22.07. This led to a share exchange ratio of EGP 51.76, equating to roughly 52 Orascom Financial Holding shares for each B Investments share.
Prime Capital highlighted that a reassessment of both entities’ financials in foreign currency, using the prevailing exchange rate of EGP 47.5, would alter the exchange ratio to EGP 62.24.
Following this assessment, the board of directors of Orascom Financial Holding endorsed the valuation provided by Prime Capital, affirming the fairness of the offer price post-adjustment for foreign currency valuation.
Hassan Sameer Fareed, Managing Director and CEO of Prime Holdings, lauded the team’s efforts in completing the valuation within a month, ensuring the timely progression of the transaction. This is in line with the Egyptian Stock Exchange’s declaration that the offer period will conclude at the close of business on 15 April.
