Pioneers starts compulsory purchase on shares of Egyptian Electric Cables

CAIRO - 21 April 2019: Pioneers Holding Company for Financial Investment (PIOH) announced the start of the implementation of the compulsory purchase on shares of its subsidiary Egyptian Electric Cables Company at a price of LE 1.35 per share.

The compulsory purchase was submitted by the investment arm of Pioneers Holding Company for Financial Investments (SAMO Consultancy and FLORISH Investment &Wadi Consulting).

Pioneers Holding Company and its subsidiaries own 48.5 percent of Egyptian Electric Cables Company, which will rise to 68 percent after the compulsory purchase is completed.

The capital of Electric Cables Company reaches LE 711.45 million.

The company clarified in a statement that it will purchase around 134.43 million shares with a total value of LE 188.24 million.

In November, Pioneers announced its investment arm, Samo Consulting Company, offered a compulsory purchase on the supplementary percentage to 100 percent of shares of its subsidiary Egyptian Electric Cables Company at a price of LE 1.35 per share.

The company clarified earlier that this decision comes as part of the group’s strategy to increase its capital by LE 1.08 billion to consolidate the investments by adding and increasing direct investment in existing restricted or unrestricted investments to be reflected on the return of these investments.

In June, the extraordinary general assembly approved to raise the company's issued and paid-up capital to LE 4.68 billion from LE 3.6 billion, and agreed to increase its capital of LE 1.08 billion to be distributed over 216.1 million shares at a nominal value of LE 5 per share.

The board of Pioneers Holding approved in April to invest LE 2.9 billion in a year.

Pioneers marked a gross of 5.3 percent in its annual profits to reach LE 1.14 billion before minority, compared to LE 1.08 billion in 2016. Pioneers Holding is a public company, listed on the Egyptian Exchange (EGX) since June 2008.

It operates within the diversified financial sector focusing on investment banking and brokerage, with a capital of LE 3.6 billion, distributed over 708.4 million shares at a par value of LE 5 per share.

It has 34 subsidiaries operating across North America, North Africa and the Middle East. Pioneers Holding is based in Cairo, Egypt and was established in March 2007.