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Monday, 29 July 2019

Adeptio requests FRA approval to buy out Americana Egypt minority shareholders

M&A WATCH- Adeptio requests regulatory approval to buy out American Egypt minority shareholders: Adeptio AD Investments has submitted a request to the Financial Regulatory Authority (FRA) for its approval to buy out minority shareholders in the Egyptian International Tourism Projects Company (Americana Egypt) through one its subsidiaries, Adeptio said in a statement to the EGX (pdf). The company said it will “comply with all capital market regulations in Egypt including a tender offer for [Americana Egypt’s] listed shares as applicable.” Adeptio, which is led by Emirati business figure Mohamed Alabbar, is already the main shareholder in Americana Egypt.

Background: Adeptio had acquired 67% in Kuwait Food Company (Americana) in June 2016 following a two-year process, giving it indirect ownership of the majority of American Egypt. The FRA had ordered Adeptio to submit a mandatory tender offer (MTO) to buy the remaining shares in Americana Egypt earlier this year, but Adeptio had argued that its indirect ownership in the company is less than 90% of its total capital and therefore does not require an MTO submission. Adeptio submitted an appeal against the order, which the FRA promptly rejected. The company then filed a suit with an economic court challenging the FRA’s rejection, but the court also dismissed the appeal.

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