Expedition Investments submits an offer to acquire 34% of the shares of Domty
The Financial Regulatory Authority (FRA) has agreed to publish an announcement for a mandatory tender offer submitted by Expedition Investments to buy up to 96.18 million shares – or 34% – of Arab Food Industries (Domty ) at EGP 5 per share.
The purchase is expected to complement the shares Expedition Investments already owns in Domty, raising its stake in the company to 90%.
The FRA required the offeror to purchase all of the shares offered for sale in response to the tender offer, bearing in mind that if the shares offered for sale exceed the number of shares to be purchased, the offeror will purchase from all owners of shares who have responded to the offer in proportion to the sum of what has been offered.
The FRA noted that its approval to publish the offer did not depend on the commercial and investment feasibility of the offer to purchase or on any concluded procedure, agreement or decision to be taken by the offeror, and the authority does not interfere in the determination of the purchase offer price.
In addition, knowledgeable sources told Daily News Egypt that Expedition Investments is a company established under the laws of the State of Mauritius, owned by a number of Egyptian, Saudi and Emirati investors, and its aim is to to acquire a 34% stake in Domty – one of the largest players in the Egyptian cheese sector – which controls a market share of over 43% in cheese production.
The sources also indicated that 90% of the target share of the offer includes a contribution from Al-Damaty after the acquisition, which will increase to more than the current 56% by a small part of Domty’s capital indirectly through Expedition, while that 10% of the company will remain as freely tradable shares to ensure the continued listing of the company on the Egyptian Stock Exchange.
Sources expect the deal to close by the end of next August and the Egyptian market to soon see a lot of M&A activity.
Domty posted a profit of EGP 111.1 million in H1 2022, compared to a net loss of EGP 32.6 million in H1 2021.
The company’s sales also increased to EGP 2.27 billion from EGP 1.32 billion.