Electra to own 20% of Elsewedy Electric: Elsewedy Electric shareholders have put sell orders of a total of 427.7 mn shares — around 20% of the company — to Abu Dhabi-based electrical equipment manufacturer Electra Investment Holding in response to the latter’s offer, whose validity ended yesterday, according to an EGX bulletin. Electra paid USD 1.05 per share, putting the transaction’s value at some USD 449.1 mn, according to our math.

The stake is in the mid-range of what Electra was shooting for: The voluntary offer submitted by Electra in May targeted a 15-24.5% stake in Elsewedy Electric, which is over 76% collectively owned by the Elsewedy family.

Remember: Electra has been purchasing shares in Elsewedy Electric since early June after receiving the regulatory greenlight to move forward with its offer.

The fair value? Elsewedy Electric has a valuation of EGP 112.1 bn — or EGP 52.38 a share — as per the fair value study conducted ahead of the transaction’s completion. Electra’s purchase price of USD 1.05 is the equivalent of EGP 50.33 at yesterday’s USD / EGP exchange rate.

Advisors: EFG Hermes was Electra’s sole financial advisor, while BDO Keys FinancialConsulting was Elsewedy Electric’s financial advisor. MHR & Partners in association with White & Case were Electra’s legal advisor on the transaction.

Market reax: Elsewedy Electric’s shares remained relatively stable yesterday, inching down 0.06% to close at EGP 47.54 following the announcement.

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