Cairo, Egypt, 19 November 2014: The Abraaj Group (“Abraaj” or “The Group”), a leading investor operating in global growth markets, has today issued the following statement in regards to the tender offer the Group has made, through one of its Funds, for the acquisition of up to 100% of the share capital of the Egyptian Company For Foods BiscoMisr (the “Company”), a leading baked goods and confectionery manufacturer, subject to a minimum of 51% of the share capital of the Company.
The tender offer announcement has been published today following the approval of the Egyptian Financial Supervisory Authority (“EFSA”) in accordance with applicable laws and regulations. As detailed in the tender offer announcement approved by EFSA, in the event the offer is successful, Abraaj will work closely with the Company’s Egypt-based management and provide full support to Egyptian industry expert, Mohamed El-Rashidi, as incoming Executive Chairman of the Company to develop and grow the Company into a pre-eminent Egyptian branded snacks business based in Egypt, managed from Egypt and targeting the local and export markets.
Abraaj has developed a robust value creation plan for the Company with a strong emphasis on corporate governance. Abraaj will further draw on its significant industry experience and strong regional and global networks to create expansion and export opportunities for the Company as well as develop new products that will form part of a compelling offering in sweet and savoury snacks.
In the event the offer is successful, Abraaj intends that the Company will continue to be listed on the Egyptian Stock Exchange (“EGX”), allowing minority shareholders to benefit from the active value creation plan Abraaj will be putting in place. Abraaj will aim to increase dividend distributions to shareholders of the Company through the value creation plan referred to above, and also seek the amendment of the Articles of Association of the Company to allow for the payment of interim dividends.
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