Back to the complete issue
Tuesday, 27 November 2018

Regulator green-lights Orascom’s bid for large minority stake in Sarwa

M&A WATCH- Regulator green-lights Orascom’s bid for large minority stake in Sarwa: The Financial Regulatory Authority (FRA) has approved Orascom Investment Holding’s (OIH) offer to purchase a non-controlling stake in structured- and consumer-finance player Sarwa Capital, it said in a disclosure to the EGX (pdf). OIH, controlled by celebrity investor Naguib Sawiris, will make a tender for Sarwa shares from 28 November until 11 December, Beltone Financial said, according to Amwal Al Ghad.

Background: OIH said last month that it aims to acquire at least 25% of Sarwa, which OIH subsidiary Beltone Financial took public earlier this fall. Sarwa shares tanked in their EGX debut, and the FRA has since suspended Beltone’s investment banking arm for six months and opened an investigation in what it says are investor complaints of irregularities in the listing. OIH is seeking at least a 25% stake in Sarwa, offering EGP 7.36 per share for c. 216 mn shares and saying it would pay EGP 6.62 per share if it received offers for 144-216 mn shares. OIH said the offer is in line with OIH’s strategy to expand in the consumer finance sector.

On a related note: The FRA postponed to 10 December a hearing originally scheduled for yesterday on Beltone’s appeal of its six-month suspension, Al Mal reported. Beltone has consistently denied any irregularities in the transaction.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.