Announced in June, the update on the acquisition comes after the BoD received and accepted a report by BDO for Financial Consulting regarding the fair value of B Investments’ share price and the share swap ratio
Private equity firm B Investments’ board of directors (BoD) has officially approved the company’s mandatory purchase offer (MTO) to acquire 90% of Orascom Financial Holding Company (OFH), according to a new stock market filing on Tuesday.
Announced in June, the update on the acquisition comes after the BoD received and accepted a report by BDO for Financial Consulting, dated 11th of December, regarding the fair value of B Investments’ share price and the share swap ratio.
The MTO will be executed through a share swap, without a cash option, of up to 4.2 billion shares (90% of OFH) with a swap ratio of 1 B Investments share per 56.76 shares of OFH.
The deal will take place after excluding treasury shares amounting to 524.6 million shares.
According to B Investment’s Egyptian Exchange (EGX) filing, the company is finalizing procedures required to increase its issued share capital from EGP 800 million to a maximum of EGP 1.174 billion to a par value of EGP 5 per share to accommodate the approved share swap ratio.
The EGX requires companies to bolster their capital prior to an acquisition using a share swap, according to the Financial Regulatory Authority’s website.
The additional capital will be designated for the shareholders of OFH looking to swap their existing shares to B Investments by depositing their shares with their custodians, according to the filing.
