Egypt - Sources familiar with the Domty deal told Daily News Egypt that the company is in the process of appointing an independent financial adviser to determine the fair value of the company’s share in light of the acquisition offer submitted by Expedition Investments to acquire 90% of Domty at a price of EGP 5 per share.
The sources also said that it is possible to raise the bid price of the purchase offer based on the financial and legal examinations that are expected to start in the coming days.
Furthermore, the Board of Directors of the Arab Food Industries Company (Domty) agreed to allow Expedition Investments to begin the financial and legal due diligence examination process.
Sources familiar with the deal had told Daily News Egypt that Expedition Investments is a company established for the purpose of acquiring Domty and includes a number of local and foreign shareholders.
They also said that the investors will inject the necessary funding to acquire the company, pointing out that no financial adviser has been appointed for the deal so far.
Omar Al-Damaty — the Chairperson of Domty’s Board of Directors — clarified that he and Mohamed Al-Damaty — the Managing Director of Domty — will be part of the bidding consortium in light of their participation in Expedition Investments with a minority stake.
Omar Al-Damaty explained that his contribution percentage, and that of the managing director of the company, will increase if the offer is successful.
Additionally, the bidders appointed the offices of Maatouq Bassiouni and Al-Hennawy as legal advisers for the deal.
Mohamed Al-Damaty previously said that the expected sales volume for the current year amounts to about EGP 4bn and the company intends to pump investments estimated at EGP 150m in 2022.
He added that the company intends to pump investments of 50% of the company’s own resources, and 50% of credit facilities from banks, and that this is the company’s usual policy for pumping investments.
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