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Thursday, 16 April 2020

FRA says Cairo 3A will have to pay nearly 1% more than expected to acquire Egyptian Starch & Glucose

M&A WATCH- Cairo 3A will have to pay nearly 1% more than expected to acquire Egyptian Starch & Glucose after the Financial Regulatory Authority (FRA) mandated an acquisition price of EGP 8.61 per share. The EGP 8.54 per share Cairo 3A had offered was below the average closing price in the three months prior to the offer being made — in contravention of the Capital Markets Act. That implies Cairo 3A will be paying about EGP 431 mn rather than the earlier-projected EGP 428 mn.

What’s next? The company is now reportedly waiting on the Egyptian Competition Authority (ECA) approval before moving ahead with a mandatory tender offer on shares it does not yet own.

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