M&A WATCH- Our friends at the Egyptian-American Enterprise Fund (EAEF) have acquired a significant minority stake in ophthalmic meds maker Orchidia Pharma Industries on Wednesday, EAEF announced in a statement (pdf). The transaction, executed through EAEF’s investment manager Lorax Capital Partners, will see the EAEF subscribe in an upcoming capital increase along with Orchidia founder Ossama Abbass. EAEF will also be acquiring Orchidia shares held by SPE Capital (formerly Swicorp Private Equity) “as well as a stake owned by other minority shareholders.” The size of the transaction was not disclosed. We had noted in July that Jordan’s Hikma had offered c. EGP 400 mn against a demand of EGP 450 mn from shareholders for a stake of undisclosed size. SPE Capital reportedly owned 38% of the company through its Intaj Capital II fund. It had been previously reported that EAEF was looking to for a majority stake of at least 55%. “EAEF intends to provide all necessary resources to fully support the company’s future growth plans to cater to the growing Egyptian market as well as develop Egypt’s export potential,” said EAEF Chairman James A. Harmon. “We hope that our investment would encourage and demonstrate to new foreign investors the significant potential in the Egyptian market,” he added. Arqaam Capital was financial advisor on the transaction, while TMS Law Firm and DLA Piper were legal advisors to EAEF and Abbass, respectively.

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