Bye, WM. Wink wink, Chimera
Beltone halts WM due diligence after Chimera enters the chat: Beltone Financial has suspended the WM Consultancy-led consortium from doing due diligence after receiving a rival offer from Chimera Investments on Sunday. The financial services company had given WM the go-ahead to start due diligence last week but has been allowed by the Financial Regulatory Authority (FRA) to temporarily halt the process while it considers Chimera’s bid, according to a statement (pdf) from the regulator yesterday.
Chimera’s offer is better than WM’s: The Abu Dhabi-based investment firm has offered to purchase 51-90% of the company for EGP 1.49, a 10% premium on the EGP 1.35 bid submitted by WM and valuing it at around EGP 690 mn, by our math.
And there’s no due diligence involved: Chimera has not requested to do due diligence on Beltone ahead of a potential acquisition, according to the statement.
Beltone’s shares rose 11.2% during trading yesterday following the news, and are up 21% since 5 June when WM submitted its offer.
A word from the major shareholder: Orascom Financial Holding, which owns 58% of Beltone, said in a disclosure (pdf) yesterday that it will make the final decision on the offer following Chimera’s investment study.
How much would Chimera have to fork out? The value of the transaction would be up to EGP 619.4 mn.
Where this all started: An investor alliance led by WM submitted a non-binding offer to acquire 51-90% of the company for EGP 1.35 a share earlier this month. The “strategic investors” in the consortium remain largely unknown except for former Beltone employee Wael Mahgary, who heads up WM.