Gig-Egypt could soon be AIG Egypt’s largest shareholder:Gig-Egypt is on course to acquire at least 95% ofAIG Egypt after the latter’s largest shareholder agreed to sell its stake in an upcoming mandatory tender offer (MTO) approved by the Financial Regulatory Authority (FRA) on Thursday. AIG Limited Holding, which owns 95.02% of its Egyptian subsidiary, accepted in December Gig-Egypt’s acquisition offer, according to a document (pdf) released yesterday by the FRA.

Telling the players apart:

  • AIG Egypt is the local subsidiary of US ins. giant AIG, which is present in around 80 countries. Its Egyptian arm offers only property and travel covers. AIG entered Egypt back in late 2000; the company cut back its product portfolio here in 2017 and has been open to a potential exit since.
  • Kuwait-listed Gig owns 99% of its Egyptian subsidiary, Gig-Egypt, with the remainder held by Suez Canal Bank and Egyptian businesspeople. Gig has been operating in the Egyptian market since 1994 and offers both consumer and commercial ins. services.

MTO approved: The FRA said it approved Gig-Egypt’s offer to acquire 75-100% of AIG Egypt on Thursday. Gig-Egypt submitted the takeover bid last August, offering to acquire the company’s shares at EGP 164.15 apiece. The offer values AIG Egypt at EGP 197 mn.

What’s next: The MTO will open once the company publishes an announcement, giving AIG Egypt shareholders a 10-day window to sell their shares. The buyer is set to merge 99% of AIG Egypt with Gig-Egypt if the transaction goes through, the statement reads.

ADVISORS- Gig-Egypt has appointed Barakat, Maher & Partners in association with Clyde & Co. as legal counsel while Prime Securities is brokering the transaction, the statement reads.

Tags: