FRA approves Cairo 3A mandatory offer to acquire Egyptian Starch and Glucose

CAIRO – 26 April 2020: The Egyptian Financial Regulatory Authority (FRA) has agreed to publish the mandatory tender offer (MTO) submitted by Cairo 3A for International Industries to acquire the Egyptian Starch and Glucose.

FRA clarified in a statement Sunday that Cairo 3A’s MTO includes the purchase of up to 50.077 million shares, which represents 100 percent of the shares of the Egyptian starch and glucose capital, at a price of LE 8.61 per share.

“The period of validity of the compulsory purchase offer begins from the day following the date of the announcement of the offer, starting from Sunday to the end of the trading session on Thursday, May 7,” it noted.

It pointed out that the minimum of the purchase offer is up to 25.5 million shares, representing 51 percent of the shares of the company targeted by the offer.

Earlier in April, the board of directors of Cairo Poultry Company approved the final offer submitted by Cairo 3A for International Industries to buy the company’s stake in the Egyptian Starch and Glucose.

The company clarified that the final decision is still pending the approval of the ordinary general meeting (OGM) set to be held on May 5.

Cairo 3A has offered to buy Cairo Poultry’s stake, 13.65 million shares, in the Egyptian Starch and Glucose for LE 8.54 per share.

On another note, Cairo Poultry recorded net profits after taxes of LE 116.9 million in 2019, compared to LE 147.62 million in 2018.

Cairo Poultry operates within the food, beverage & tobacco sector focusing on packaged foods & meats, and the Egyptian Starch & Glucose operates within the food, beverage sector focusing on agricultural products.