UAE’s Electra Investment acquires 20% stake in Elsewedy Electric
Updated 7/9/2024 6:01:00 AM
Arab Finance: The Emirati company Electra Investment Holding has acquired around 20% of Egypt’s Elsewedy Electric for a total of $450 million or at $1.05 per share, market traders in the know told Asharq Business.
In May, Electra Investment offered to purchase 24.5% of Elsewedy Electric, with the condition that the minimum share of the purchase offer to be 15%.
The Egyptian Exchange (EGX) opened the private transactions market (OPR) for sale orders from June 2nd until the end of July 8th's trading session, resulting in about 20% of shareholders responding to the offer.
Vice President Equity Research at Al Ahly Pharos Rehan Hamza told Asharq Business that the offer price was close to the fair value of the share and its payment in USD provided a competitive advantage.
Elsewedy family holds about 68.1% of the listed shares, with the remaining shares owned by investment funds, financial portfolios, and small investors in the EGX.
For his part, Youssef El-Banna, a financial analyst at NAEEM Holding for Investment, added to Asharq Business that this investment is expected to aid in expanding Elsewedy's business within and outside Egypt.
Founded in 1997, Elsewedy Electric is a leading integrated energy solutions provider in Africa and the Middle East. It has a portfolio incorporating all traditional and renewable energy areas along with related services.
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