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Social Impact Capital submits offer to own up to 100% of CIRA: CIRA Education majority shareholder Social Impact Capital (SIC) has submitted a mandatory tender offer to acquire up to an additional 48.78% of CIRA, according to a statement (pdf) from the Financial Regulatory Authority. SIC currently holds a 51.2% stake in the country’s leading private education company. The offer is currently being reviewed by the FRA.
(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)
The details: SIC has offered to purchase some 284.3 mn of CIRA’s shares at EGP 15 a piece — EGP 1 higher than previously expected — putting the transaction’s value at EGP 4.26 bn by our math. CIRA Education will also be required to submit a mandatory tender offer for shares in its EGX-listed subsidiary Cairo for Educational Services (CAED) if the acquisition changes CAED’s ownership structure
What’s next for CIRA? If the mandatory tender offer is successful, SIC plans to delist CIRA Education from the EGX, with the founding El Kalla family expected to remain invested in the company and our friend Mohamed El Kalla expected to stay on as CEO to lead the company’s regional growth.
The news follows an FRA extension of the MTO deadline: The FRA in August granted SIC a 60-working-day extension on its mandatory tender offer effective 11 August — meaning that SIC managed to get the offer in right before the deadline.
All part of the PIF’s plan to take over CIRA: The Saudi Egyptian Investment Company — a wholly-owned subsidiary of the Public Investment Fund — said in May that it would buy into SIC. SIC used the cash injection to launch its mandatory tender offer for the rest of CIRA’s shares.
We’ve seen this movie before: PIF has a proven track record of turning national players into regional champions, with the global growth of born-in-Egypt driller Ades Holding being a case in point. Since acquiring Ades and taking it private, PIF has helped Ades land contracts in Saudi Arabia and new markets, refine its strategy, and go public again on KSA’s Tadawul.
