Back to the complete issue
Sunday, 23 December 2018

Khalil withdraws appeal, asks Egypt’s FRA for 60-day grace period to submit MTO

M&A WATCH- Khalil withdraws appeal, asks FRA for 60-day grace period to submit mandatory offer for Raya: Raya Holding founder Medhat Khalil has withdrawn his appeal against the conditions laid out by the Financial Regulatory Authority, which has ordered Khalil to sell down shares in Raya or make a mandatory tender offer for 100% of the company, according to an EGX disclosure (pdf). Khalil asked the FRA for a 60-day grace period to either submit the MTO or sell down the shares that triggered it in the first place. Khalil had approached at least four financiers since earlier this month to secure EGP 700-800 for the take-private bid.

Background: Khalil had appealed last month the conditions of an FRA-ordered MTO to acquire the full 100% stake in Raya. The authority ordered the MTO after declaring Khalil and immediate family members control more than 33% of the company, which triggered the MTO requirement. Khalil did not object to the MTO itself, but rather asked that an independent financial advisor be appointed to determine a fair share value, and requested a deadline extension to secure required financing.

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.