Egyptian-Gulf consortium awaits FRA approval to acquire Domty

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The Financial Regulatory Authority (FRA) is currently studying a compulsory purchase offer submitted by Expedition Investments for 90% of the Arab Food Industries Company’s (Domty) shares.

Informed sources told Daily News Egypt that Expedition Investments is a company established according to the laws of the State of Mauritius and owned by a number of Egyptian, Saudi, and Emirati investors.

They also indicated that El-Damaty family will retain a minority stake in that company after the deal’s completion.

The FRA is now processing a compulsory purchase offer submitted by the company representing the members of an investor alliance to acquire the shares of Domty.

The sources added that the offeror has completed the due diligence process and is awaiting the FRA’s approval, pointing out that the authority will request the appointment of an independent financial adviser to determine the fair value of Domty’s shares.

Furthermore, they sources expect that the implementation of the deal will be completed by the end of August, and that the Egyptian market would witness great activity in mergers and acquisitions.

The purchase offer includes acquiring up to 96.18m shares at a cash price of EGP 5 per share.

The Board of Directors of Domty agreed to allow Expedition Investments to conduct a financial and legal due diligence process earlier.