Elsewedy Electric could welcome a new shareholder: UAE-based Electra Investment Holding has submitted a voluntary offer for up to 24.5% of EGX-listed Elsewedy Electric at USD 1.05 a pop, according to a statement (pdf) from the Financial Regulatory Authority (FRA). The buyer wants to acquire at least 15% of Elsewedy Electric — which is over 76% collectively owned by the Elsewedy family — to execute the offer. The FRA is currently studying the offer.

This would be a big ticket acquisition: If Electra succeeds in getting 24.5% of the company at USD 1.05 a pop — a premium of c. 11% to Elsewedy Electric’s share price of EGP 44.41 at yesterday’s close — the transaction would be valued at USD 558.1 mn (EGP 26.2 bn), according to our math.

Remember: Elsewedy Electric finished 2023 on a high note after net income jumped 87% y-o-y to EGP 10.1 bn. The company’s revenues also jumped 65% y-o-y to EGP 152.2 bn during the same period.

Advisors: EFG Hermes is Electra’s sole financial advisor for the transaction, an informed source told Enterprise.

Market reax: Elsewedy Electric’s shares jumped 20.0% to EGP 44.41 a share at the end of trading yesterday.

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