Tuesday, 15 June 2021

Elsewedy has a busy pipeline of acquisitions in 2H2021, and further into 2022

Elsewedy Electric is aiming to close three new acquisitions and greenfield investments in the second half of the year, a plan which will involve acquiring majority stakes in unnamed technology, cable, and electric equipment providers, the company’s M&A director, Ahmed Nabil, told business information platform Acuris. The company is looking at targets with a value up to USD 100 mn — or more if it makes strategic sense, Nabil said, without specifying where the targets are based. A team from Elsewedy is in “advanced talks” to finalize the three agreements. More transactions are also planned for next year, Nabil said.

Elsewedy had been shortlisted by Portugese authorities to conduct due diligence on Portugese power group Efacec, Nabil said, but declined to provide any further information. Efacec reported a topline of EUR 440 mn in 2020.

Debt is on the menu: Elsewedy will consider debt to cover some of the investment costs. It is also open to bigger-ticket acquisitions should they “make strategic sense,” Nabil added.

Elsewedy is currently on the lookout for financial, tax, and legal advisors to work on due diligence studies, and will also welcome recommendations from sell-side advisors for future acquisition prospects, Nabil noted.

Elsewedy recently acquired two power transformer companies in South Asia, PT CG Power Indonesia and Karachi-based Validus Engineering, in transactions worth a combined USD 60 mn. The acquisitions were part of the EGX-listed company’s push to extend its focus beyond its core markets in MENA, Africa, and Europe.

CATCH UP QUICK- Orascom Investment Holding (OIH) subsidiary Orascom Pyramids and Holding Company for Tourism and Hotels (HOTAC) signed today an EGP 200 mn agreement for the Giza sound and light show revamp, Hapi Journal reports. The project is slated for implementation within 16 months from the date the land is received. Under the agreement, Orascom Pyramids will obtain the management rights for 15 years, while Misr Company for Sound and Light, affiliated to HOTAC, will acquire 17% of the project’s annual revenues with the minimum of EGP 36 mn, with a cumulative increase of 7% annually.

CLARIFICATION- 15 June 2021

The story clarifies that Elsewedy is looking at targets with a value up to USD 100 mn — or more if it makes strategic sense. A previous version of the story said that the company plans to target companies with equity worth USD 100 mn.

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