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Thursday, 9 November 2017

Is it still a horse race to acquire NCMP?

M&A WATCH- Banque Misr, National Bank of Egypt to exit NCMP: Banque Misr plans to sell its 42.9% majority stake in the National Company for Maize Products (NCMP) through Misr Financial Investment Company, Al Mal reports. The National Bank of Egypt will also exit its 9.6% stake in the company after the Financial Regulatory Authority (FRA, formerly EFSA) approved yesterday Cairo Three A’s mandatory tender offer to acquire 100% of NCMP’s at EGP 45 per share.

Still a horse race? The remaining bidder for the stake had a unit of Archer Daniels Midland (ADM), whose offer was rejected for being lower than Cairo Three A’s at EGP 35.56 per share. ADM still plans to present a counter offer, sources tell Al Mal. The company is legally allowed five days from 21 November — the deadline for the subscription window — to submit its counter offer, which has to be at least 2% higher than the original. ADM executives were surprised by the FRA’s decision to turn down its offer, the sources add, explaining that company executives had met several times with Investment Minister Sahar Nasr to discuss the transaction, which was meant to kickoff their expansion plans in the country’s food sector.

Advisors: Pharos Holding and Banque Misr are sellside advisors to Misr Capital Investment, while CI Capital is advising Cairo Three A Group and Matouk Bassiouny is its legal counsel.

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