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Thursday, 24 October 2019

FRA grants Adeptio extension to submit MTO for Americana Egypt

M&A WATCH- FRA grants Adeptio extension to submit offer to minority shareholders of Americana Egypt: The Financial Regulatory Authority (FRA) given Adeptio AD Investments a 15-day grace period to submit a mandatory tender offer (MTO) to buy out minority shareholders in the Egyptian International Tourism Projects Company (Americana), according to a statement (pdf). Adeptio had requested a 30-day extension on the initial deadline, which was set for Monday, 21 October, on the grounds that it has yet to complete its fair share evaluation on Americana.

Background: Adeptio acquired 67% in Kuwait Food Company (Americana) in June 2016 following a two-year process, giving it indirect ownership of the majority of Americana Egypt. The FRA then ordered Adeptio to submit an 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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