Emirati Electra’s bid for Elsewedy Electric moves forward: The Financial Regulatory Authority (FRA) approved Abu Dhabi-based electrical equipment manufacturer Electra Investment Holding’s bid to acquire a 24.5% stake in Elsewedy Electric, according to an FRA statement (pdf) out Thursday.

The pricing: Electra will pay USD 1.05 a pop — marking an 11.37% premium to Elsewedy Electric’s share price of EGP 44.51 (USD 0.94) at the end of trading before the weekend. If Electra succeeds in getting the whole 24.5% of the company it’s after, the transaction would be valued at USD 558.4 mn, by our math.

What’s next? Elsewedy Electric’s board will meet on Wednesday to discuss the offer and appoint an independent financial advisor to gauge the fair value of the company’s shares, two unnamed sources told Asharq Business. According to the FRA, Elsewedy Electric will need to tap a financial advisor and clarify the board’s decision within the next 15 days. The share sale will be conducted via the special operations market (OPR) within the next 20 days.

Remember: Elsewedy Electric had a good 2023 with the company’s net income jumping 87% y-o-y to EGP 10.1 bn and revenues rising 65% y-o-y to EGP 152.2 bn.

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

Market reax: Elsewedy Electric’s shares rose 0.47% to EGP 44.51 a share after the news broke on Thursday.

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