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Wednesday, 28 November 2018

Medhat Khalil appeals conditions for Raya MTO

M&A WATCH- Medhat Khalil appeals terms of FRA-mandated takeover bid for Raya: Raya Holding for Financial Investments founder Medhat Khalil has appealed the conditions laid out by the Financial Regulatory Authority (FRA) for a mandatory tender offer (MTO) for 100% of his company by 27 November, Al Mal reported. In his appeal, Khalil asked that an independent financial advisor be appointed to determine a fair share value, Raya CFO Hossam Hussein said. Khalil also requested a deadline extension of two months to secure the required financing, which he had previously estimated could ring in at EGP 800 mn. Khalil had said it would be impossible to secure the amount by the deadline.

Background: The FRA had ordered that Khalil launch an MTO or sell off shares in Raya after declaring he had triggered the MTO requirement with an effective stake of more than 33%. Khalil says he and his family members control 32% of shares, but the FRA is counting the 10% stake owned separately by his brother-in-law as a related party, bringing the Khalil group’s total stake to 42%.

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