EFSA receives tender offer from Orascom to purchase Sarwa Capital shares

CAIRO – 18 November 2018: The Egyptian Financial Supervisory Authority (EFSA) announced Sunday that it has received a tender offer from Orascom Investment Holding (OTH) to buy capital shared of the Sarwa Capital company.

OTH’s offer comes to buy a non-controlling interest in the company.

The offer includes either the acquisition of 216 million shares of Sarwa Capital at a price of LE 7.36 or the acquisition of 144 million shares to 216 million shares at LE 6.62 per share, 10 percent less that the public offering price.

The bidder has the right to accept or reject the deal in the event that the number of shares is less than 144 million shares.

We hope to obtain the approval of the Financial Supervisory Authority to submit the offer and to follow the necessary legal procedures for that, OTH explained.

Earlier Sunday, Sarwa Capital announced the purchase of 28.4 million of the company’s shares at a public offering price of LE 7.36 during a trading session Sunday, as part of the company’s strategy to stabilize the company’s stock prices.

The Egyptian Stock Exchange (EGX) had announced earlier that the transactions that occurred with the aim of stabilizing the financial investment company had reached 28.44 million shares.

On October 4, the company announced that its private offering was oversubscribed around 10.83 times, recording a strong demand of c.LE 21 billion ($1.2B), with demand coming from over 280 institutional and high net worth investors.

The company added that the final price of its public offering was set at LE 7.36 per share after the success of the book-building process for the institutional offering of 265.65 million ordinary shares.

The company will allocate LE 700 million of the yields of public and private offerings to increase its capital by LE 95.11 million, in a closed subscription of selling shareholders at the offer price (LE 7.36).

“Based on the offer price, the company’s post money market capitalization is LE 5.3 million,” Sarwa stated.

In October, Sarwa also announced that it will offer around 295.17 million shares, representing 47.2 percent of the total issued share capital, on the Egyptian Exchange (EGX).

The statement added that the indicative price for its IPO ranges between LE 7.04 and LE 8 per share, with an expected offering size in the range of LE 2.1 billion to LE 2.4 billion.

The shares are offered in two tranches consisting of: (i) a retail offering of 29.52 million shares to individual investors, representing 10 percent of the offering (the Retail Offering), (ii) a private offering of 265.65 million shares to qualified institutional investors, representing 90 percent of the offering (the Institutional Offering).

Beltone Investment Banking is acting as Sole Global Coordinator and Bookrunner, and Marouk Bassiouny is acting as counsel to the issuer.

In August, Sarwa Capital announced its intention to issue IPO on the EGX.
Sarwa Capital is a provider of consumer and structured finance solutions in Egypt.