B Investment considers buying stake in food operating company

CAIRO – 8 May 2018: BPE Holding for Financial Investments is seriously considering buying a controlling stake in an unlisted company operating in the food industry sector, according to B investment founding partner and board member Alaa el-Sabaa.

Sabaa added that the company is also working on buying a solar power plant in Banban.

Additionally, he stated that B Investment is studying new acquiring opportunities under the umbrella of its subsidiary, Ibtikar for Investment Finance Company, as well as the investment opportunities in university education, either through the purchase of existing universities or the establishment of new universities.

"After the success of B Investment’s offering in the Egyptian Exchange (EGX), the company is looking forward to pumping investment in the Egyptian market," Sabaa said.

The company decided earlier to issue 35 percent of its LE 1.7 billion capital in EGX.

On March 6, the Financial Regulatory Authority (FRA) approved the issuing program of BPE Holding for Financial Investments (BCAP), in preparation for the offering of the company’s shares in the Egyptian Exchange (EGX), to be the first public company to issue its shares in 2018.

BPE Investments’ initial public offering (IPO) was oversubscribed 84.4x by the end of the session held on March 26 through the sale of 422 million shares out of 5 million shares offered to the public offering.

Sabaa clarified that the offering for merging or acquisition between Sixth of October for Development and Investment (SODIC) and Madinet Nasr Housing and Development Company is one of his company’s investments.

On April 11, SODIC welcomed the discussions with Madinet Nasr Housing to explore potential strategic alternatives for the two companies by merging or acquisition.

The company clarified in a filling to the Egyptian Exchange (EGX) that the discussions will bring benefits and synergies to both companies. SODIC further noted that the negotiations will determine the expansion of businesses, maximizing the return for shareholders of both firms.

The board of Madinet Nasr Housing earlier approved beginning negotiations with SODIC on a possible merger or acquisition.

SODIC's current capital is LE 1.36 billion, distributed through 342.29 million shares at a par value of LE 4 per share, while Madinet Nasr Housing’s capital records LE 997.1 million, distributed through 997.1 million shares at a par value of LE 1 per share.

BPE Holding for Financial Investments operates within the diversified financial sector focusing on investment banking & brokerage.

It has one subsidiary operating in Egypt, working in household appliances. BPE Holding for Financial Investments is based in Giza, Egypt, and was established in April 2006 through 18 domestic and foreign investors.

The investment portfolio of the company includes: Ibtikar Investment Finance, Total Egypt, Nasr City Housing and Development, Power Generation Engineering and Services Company (PGESCo), Giza Systems, Cairo Kidney Center, BIO Pharma Egypt, and Al-Ismailia for Real Estate Investment.