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Thursday, 9 April 2020

Cairo 3A completes due diligence and offers EGP 8.54 a share for Egyptian Starch & Glucose

M&A WATCH- Cairo 3A makes final offer for Egyptian Starch & Glucose at EGP 8.54/share: The three majority stakeholders in the Egyptian Starch & Glucose company — the Egyptian International Tourism Projects Company (Americana Egypt), Americana Egypt’s parent company Americana Group, and Cairo Poultry — have received an offer from Cairo 3A to purchase their stake at a price of EGP 8.54 per share after the company completed due diligence, according to a disclosure (pdf). The shareholders will come to a decision on the offer today, before Cairo 3A submits a mandatory tender offer to the Financial Regulatory Authority next Tuesday 14 April.

Cairo Poultry’s general assembly signed off on the transaction earlier this week and indicated a willingness to sell its stake at any price within the initial EGP 8.99 – EGP 10.18 range given by Cairo 3A.

Background: Cairo 3A earlier this year began its bid to purchase shares in Egypt Starch & Glucose held by three major shareholders: a 23.2% stake held by Egyptian International Tourism Projects Company (Americana Egypt), Americana Egypt’s parent company Americana Group’s 41% stake, and Cairo Poultry’s 27.3% stake. Cairo 3A offered to buy the combined 45.8 mn shares for EGP 8.99-10.18 apiece ahead of starting due diligence, valuing the stake at EGP 450-510 mn. Egyptian Starch & Glucose and the board of all three shareholders approved the offer shortly after Cairo 3A declared its bid.

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