Orascom Investment withdraws acquisition offer of NILE Sugar

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Tue, 09 Jul 2019 - 01:38 GMT

FILE – Orascom Investment

FILE – Orascom Investment

CAIRO – 9 July 2018: Orascom Investment Holding’s (OIH) board of directors decided Sunday to withdraw the offer to acquire the entire share capital of Nile Sugar S.A.E and end all procedures in this regard.

According to a filing to the Egyptian Exchange (EGX) on Monday, the company’s Vice Chairman Akil Bashir clarified to the board that the parties have not agreed on the definitive terms and conditions; therefore, the parties decided to end the negotiations and the procedures for consummating the transaction.

“The company’s management shall continue searching for other investment opportunities in the agro-industry field, to be presented to the board of directors once the financial and technical studies are finalized,” it stated.

In April, Orascom Investment Holdings’ 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 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.

On another note, the board of directors approved to grant a shareholder’s loan to its subsidiary,Beltone Financial Holding, amounting to $1.55 million, to subscribe in the capital increase of Auerbach Grayson & Company LLC subject to the approval of the General Assembly being a related party transaction.

OIH owns 70 percent of Beltone Financial Company.

Orascom Investment Holding Company (OIH) recorded a consolidated loss of LE 78.86 million during the first quarter of 2019, compared to a loss of LE 121.52 million during the same quarter of 2018, with an increase of 35.1 percent.

OIH’s current capital is worth LE 2.2 billion, distributed over 5.24 billion shares. Orascom Investment Holding works in the fields of GSM, media, cables and mobile communications in Egypt, North Korea and Lebanon.

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