Delta Ins. has two new suitors: Axa Egypt and Morocco’s Wafa Assurance have each registered their interest through non-binding offers to buy up to 100% of Egypt Kuwait Holding (EKH) subsidiary Delta Ins.’ shares through mandatory purchase offers, according to an EGX filings.

The offers: Both AXA and Wafa Assurance value Delta’s shares at an initial price of EGP 50 a pop, bringing the total value of a purchase of 100% of the company’s shares to EGP 5 bn. 

Both companies have requested approval from the Financial Regulatory Authority to conduct due diligence on Delta, with the companies’ initial valuation subject to adjustment following the fair value studies.

Moving forward: Delta’s board of directors is in the process of studying both offers, and has voted to appoint a legal advisor to follow up on the legal and regulatory requirements, the parent company said in a disclosure (pdf).

Is this the beginning of an M&A wave in the ins. sector? Industry sources have been anticipating a wave of M&A activity in the sector since President Abdel Fattah El Sisi’s ratification of the Unified Ins. Law in July, which was expected to produce capital inflows of approximately EGP 2.9 bn as firms sought to meet new capital requirements, insurance broker Mohamed El Ghatrefy told EnterpriseAM. The acquisition of Delta Ins. could mark the beginning of such a wave, El Ghatrefy said, especially in light of the FRA’s new rules for M&As in the NBFI sector, which aim to enhance competitiveness and streamline the process of obtaining regulatory approvals.

There are signs that EKH might want to get in on the action: Other firms want a piece of EKH’s ins. portfolio, with the firm receiving an offer to purchase its 25% stake in Mohandes Ins. earlier this year. “It appears that EKH is moving toward restructuring its investments in the sector,” a source familiar with the matter told EnterpriseAM.

Advisors: EFG Hermes is acting as the sell side’s advisor.

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