Raya gives preliminary greenlight to Helios Investment Partners’ acquisition bid: Africa-focussed PE outfit Helios Investment Partners ’ offer to acquire 49% of Raya Foods for USD 40 mn has been approved and initially accepted by parent company Raya Holding’s board, the group said in a disclosure to the EGX (pdf). The news follows Raya’s announcement on Thursday that an undisclosed bidder had made an offer for the company.

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The wheels are already in motion: The company’s board also approved appointing Financial Advice Corporate Transactions (FACT) as the independent financial advisor to determine the fair value of Raya Foods’ shares. Helios Investment’s offer puts the company’s valuation at some USD 65 mn.

Where is the money going? The USD 40 mn investment will go towards developing Raya Foods’ manufacture and export of frozen foods, increasing its production capacity in line with the Raya Holding’s plan to expand internationally, according to a company statement (pdf). The plan is to turn the company from the country’s second largest frozen produce exporter — with an annual production capacity of 50k tons — to the country’s largest through establishing a second factory dedicated to freeze-dried fruits and vegetables.

Market reax: Raya Holding’s shares fell 7.6% during yesterday’s trading to close at EGP 3.18 per share, reversing some of the gains seen during Thursday’s trading — the company’s shares jumped 12.8% when the news first broke out on Thursday.

What they said: “This investment strengthens our diversified investment portfolio and supports our expansion plans into international markets, positively impacting the Egyptian economy and our company’s performance on the Egyptian Stock Exchange, creating added value for our Shareholders,” said Raya Holding CEO Ahmed Khalil.

Helios Investment has big investment plans in Egypt: The company is gearing up to invest some USD 250 mn in Egypt in the near future, with a particular focus on potential investments in the food, consumer, healthcare, and fintech sectors, Al Borsa quotes the company’s Head of Consumer and Healthcare Raed Barkatis as saying.

New investments could take place soon: The firm is currently studying several potential investments in Egypt and aims to invest in multiple companies by next year, he added.

ARLA CAN START ITS EVALUATION OF DOMTY-

Denmark-based Arla Foods can start its due diligence of EGX-listed dairy company Domty after its board greenlit the move, the local cheesemaker said in a statement (pdf). Domty last week postponed allowing Arla to conduct its due diligence until the company responded to board members’ inquiries regarding the potential acquisition.

Remember: Arla last week submitted a non-binding offer to acquire up to 100% of Domty in a transaction that values the home-grown dairy company at some USD 183 mn.

TRIQUERA TO WELCOME NEW SHAREHOLDER-

Minapharm majority shareholder to sell minority stake to unnamed bidder: Triquera — which owns a 79.59% stake in local drugmaker Minapharm — has signed a preliminary agreement with an unnamed investor looking to buy a minority stake in the firm through a capital increase, the company said in an EGX disclosure (pdf). The transaction will help Triquera and its subsidiaries grow in the biotech field and support future investments in similar companies.

What’s next? The mystery bidder will conduct their due diligence of Minapharm and await the necessary approvals.

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