STC subsidiary in process of acquiring Giza Systems for $145mln

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Saudi Arabia - Arabia Communications Services Company (Solutions) — one of the subsidiaries of Saudi Telecom Company (STC) — is preparing to acquire the entire stake of B Investments Holding in Giza Systems, which amounts to 44.7%.

The Board of Directors of B Investments Holding approved the study of the fair value of the shares of Giza Systems prepared by independent financial adviser BDO Egypt Consulting, which set the value at EGP 202.1 per share.

B Investments Holding has agreed to the binding offer of Solutions to acquire its entire stake in Giza Systems through an indirect stake on the basis of a total value of $145m.

The final value of the equity of the shareholders of Giza Systems will be determined according to the final estimation of the value of the debts and working capital of the company on the date the transaction is completed.

The binding offer requires signing the final sale agreement and obtaining all necessary approvals from the concerned authorities to complete the acquisition process.

B Investments Holding owns 68% of Energy Technologies, which owns 65.7% of Giza Systems, making the indirect stake of B Investments Holding in Giza Systems 44.7%

B Investments Holding recorded a net profit of EGP 60.46m in the first half (1H) of 2022, compared to EGP 72.51m during the same period last year.

The company’s revenues, however, declined to EGP 59.56m, down from 1H 2021’s EGP 98.93m.