Sunday, Jul 10, 2011
Electrolux AB (ELUX-B.SK, ELUXY) said Sunday it agreed to acquire Olympic Group Financial Investments (OLGR.CI) in a deal that includes the purchase of Paradise Capital's 52% controlling interest in the Egyptian appliances manufacturer.
Electrolux said it will launch a mandatory tender offer to buy all the shares in Olympic Group at a price of 40.60 Egyptian pounds ($6.82) per share. The offer is expected to be finalized in late July or early August. It plans to delist the Olympic Group's shares from the Egyptian Stock Exchange.
Following the mandatory tender offer, Electrolux will sell Olympic Group's ownership in its two associated companies, Namaa and B-Tech, to Paradise Capital. Both companies are listed on the Egyptian Stock Exchange, and the deal puts their combined value at 450 million Egyptian pounds ($75.5 million).
The total equity value of Olympic Group's operations excluding Namaa and B-Tech is seen at 2.0 billion Egyptian pounds ($335.7 million).
Olympic Group has 7,300 employees and manufactures washing machines, refrigerators, cookers and water heaters. It is seen as a leading manufacturer of appliances in the Middle East, with a volume market share in Egypt of about 30%.
The deal comes after Electrolux in March said it had resumed talks to acquire Cairo-based Olympic Group after putting the acquisition on hold earlier this year due to political turmoil in Egypt.
-Dow Jones Newswires
(END) Dow Jones Newswires
10-07-11 1724GMT
