Sawiris' Orascom Financial receives offer to sell 90% stake

The acquisition is proposed through a mandatory tender offer (MTO) via a share swap.

MTOs are required for the acquisition of 30 percent (or more) of a company at a certain price. A share swap is an agreement between two companies where they exchange shares in each other's companies.

Share swap ratio
 

The agreed-upon share swap ratio amounts to one share of B Investments for 56.76 shares of OFH.

B Investments has a total capital share of over 160 million. OFH's total shares, excluding treasury shares, are 4.7 billion.

The stocks of OFH and B Investments closed on Thursday at a value of EGP 0.24 and EGP 20.41, respectively.

Deal finalization
 

B Investments' board approved authorizing its chairman or managing director to submit relevant documents for the offer to regulatory bodies.

The board also approved signing an agreement with OFH's main shareholder "outlining the general framework for executing the acquisition, and under this agreement, the main shareholder will be required to accept the offer from the potential purchaser."

The main shareholder in OFH (51.6 percent) is OTMT Acquisition company, which was established in Luxembourg by the Sawiris family. The largest shareholders in B Investments are UAE's RIMCO Investments (10.6 percent), Samih Onsi Sawiris (9.2 percent), European Investment Bank (6.5 percent) and Saudi Rolaco EGB Investment (5.2 percent).