CAIRO – 4 April 2019: Orascom Investment Holdings’ (OIH) board of directors ratified the approval of the independent financial advisor’s report (BDO Financial Consultants), which set the fair value of the share capital of Nile Sugar Company SAE at LE 2.84 per share with a total value of LE 3.76 billion.
Negotiations between Orascom’s Vice-Chairman of the board Akil Bashir and the shareholders of Nile Sugar were held about the mechanism of acquisition of their shares in Nile Sugar, the purchase price and the terms of payment to the best interest and benefit of the company.
Bashir announced that the results of the negotiations included the number of shares to be sold totaled 1.326 billion representing 100 percent of the issued share capital of Nile Sugar to be acquired by the company.
He noted that IFA valuation recorded LE 3.761 billion, pointing that the purchase price hit LE 3.59 billion as the total amount of the transaction, in addition to settlement of the current shareholders’ loan with an aggregate amount of approximately LE 70 million.
Regarding the structure and terms of payment, the company said that the payment of 10 percent of the total purchase price amounting to LE 359.13 million in addition to settlement of the shareholders’ loan amounting to approximately LE 70 million will be paid upon the closing of the transaction.
“The remaining 90 percent of the purchase amounting to LE 3.23 billion shall be recorded as debt on the company’s financial statements,” the statement read.
The company clarified that the company will issue promissory notes with the amount of the remaining 90 percent of the purchase price as a guarantee for payment in favor of the sellers. “The promissory note is payable on demand. However, OTMT (Orascom’s major shareholder) acquisition is committed not to request the cash payment of the remaining purchase price.”
“In the event of the OIH proposed Capital Increase is declined by the competent regulatory authorities, the parties agreed that the transaction shall be reversed. Each party shall take all requisite actions required to implement the transaction reversal,” the company stated.
Orascom Investment Holding works in the fields of GSM, media, cables and mobile communications in Egypt, North Korea and Lebanon.