B Investments to become Orascom Financial Holding’s majority owner after shareholders respond to offer

B Investments is one step closer to snapping up a majority stake in OFH: Orascom Financial Holding (OFH) shareholders have responded to private equity firm B Investments’ MTO for a majority stake in the company. Owners of some 3.3 bn shares — a 69% stake in the company — have responded to the offer, according to two EGX bulletins (here and here).

The stake is in the mid-range of what B Investments was shooting for: B Investments wanted to acquire up to 90% of OFH and no less than 51% of the company — since the stake on offer is greater than the acceptance threshold, the acquisition process will go through.

Background: The EGX last week extended the MTO for OFH because of the Eid Al Fitr break and shareholders had until the end of yesterday’s trading session to respond to the offer. The Financial Regulatory Authority last month pushed the deadline to 15 April.

What’s next? B Investments will now need to complete the share swap — its board had agreed in December to a share swap ratio of one B Investments share to 56.76 OFH shares.

It’s been a long time coming: B Investments had approved a plan to submit the MTO back in June, but requested a deadline extension in September.