Domty approves Expedition Investment's financial, legal due diligence examination

CAIRO - 5 April 2022: The Board of Directors of the Arab Food Industries Company-Domty has approved the Expedition Investment Company's financial and legal due diligence examination of the company.

 

Domty elaborated, in a statement to the Egyptian Stock Exchange, (EGX), Tuesday, that the decision came in light of Expedition Investment’s intention to submit a compulsory purchase offer to acquire 90 percent of Domty’s capital.

 

The company indicated that its chairman and managing director will be among the consortium presenting the offer in light of their participation with a minority stake in the company presenting the offer, which will result in a higher percentage of its contribution to the company if the offer is successful.

 

Mauritius Expedition Investment Company submitted, Sunday, a letter regarding its intention to submit a non-binding purchase offer on the shares of the Arab Food Industries Company "Domty", according to the Financial Regulatory Authority (FRA).

 

Expedition Investment is a company incorporated in accordance with the laws of the State of Mauritius in consortium with some investors, 

 

 

FRA added in a filing to the Egyptian Stock Exchange (EGX), that the company’s letter includes an offer to acquire up to 90 percent of Domty’s capital shares, at an initial price of LE 5 per share.

 

The total value of the share required to be purchased, which amounts to 90 percent of Domty's capital shares, amounts to about LE 1.27 billion, and the total value of the company, according to the offer, is LE 1.41 billion.

 

According to the statement, it will be decided whether or not the final offer will be submitted in light of the results of the due diligence examination.

 

The Arab Food Industries Company - Domty, achieved profits of LE 72.42 million during 2021, compared to profits of LE 157.97 million in 2020, taking into account minority rights.

 

The company’s sales rose in 2021 to LE 3.36 billion, compared to sales of LE 2.99 billion in 2020.

 

As for the standalone results, the company achieved profits of LE 57.23 million during 2021, compared to profits of LE 143.48 million in the previous year.

 

The issued and paid-up capital is about LE 56.5 million, distributed over 282.6 million shares, with a nominal value of 20 piasters per share.