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Thursday, 26 August 2021

Foreign investor launches takeover bid for Galina

An unnamed foreign investor has launched a takeover bid for Galina Holding, submitting a bid for 100% of the company, CEO Abdelwahed Soliman told us yesterday. Soliman didn’t disclose the identity of the potential buyer or the value (or structure) of the bid, but said that the company has set an EGP 6.50 per share asking price, valuing it at around EGP 780 mn.

A second option: A January IPO. Galina is also continuing to work toward potential IPO on the EGX, which would see the company list a 49% stake as early as January 2022, Soliman said.

A slight change of plan: As recently as January, the agrifoods player was planning to sell the 49% stake in a private placement, raising an estimated EGP 600 mn, Soliman told us at the time. The sale would then have been followed by an IPO that would have seen the company float at least 10% on the EGX. Investors from the UK, US and Germany were among the potential suitors, he said.

Galina has so far received two “serious” offers: one for a 30% stake, which the company turned down, and the bid that it’s now considering, Soliman told us yesterday.

An IPO has been a long time coming: The holding company has been aiming to list one of its subsidiaries on the EGX since 2018, when it announced its plan to offer 25-40% of its frozen foods unit on the EGX. The company has said it would use the proceeds to finance its expansion plans in fruit and vegetable concentrates and meat alternatives.

ADVISORS: Galina has appointed Mazars Mostafa Shawki to value the company and is in talks with a number of bankers to manage the potential listing. It is also in talks with prospective legal counsel. The company had previously appointed Renaissance Capital to quarterback the private placement.

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