CIRA Education majority shareholder Social Impact Capital (SIC) is now offering a price-per-share of EGP 15.5 in its acquisition bid for the EGX-listed educational services provider, up from EGP 15.0 previously, according to a Financial Regulatory Authority statement (pdf) detailing the amended its mandatory tender offer.

Why would SIC up its offer? The Public Investment Fund-backed vehicle’s increased offer for the EGX-listed educational services provider follows a fair value study (pdf) of the company by financial advisor BDO Keys Financial Consulting that found the fair value of the company to be EGP 10.5 bn or EGP 17.95 per share.

The amendment also canceled a clause that stipulates the voluntary delisting of CIRA’s shares within two years of the acquisition’s execution, with the company subsequently lowering its purchase offer to buy up to an additional 38.78% of CIRA’s shares — approximately 226 mn shares by our math — in a move that would bring its holding in the company to up to 90%.

The revised share price and new target bring the total value of the transaction to up to EGP 3.5 bn by our math, down from EGP 4.26 bn previously.

Remember: The FRA approved SIC’s MTO to acquire up to an additional 48.78% of CIRA last month.

Advisors: Our friends at EFG Hermes are brokering the transaction and Matouk Bassiouny & Hennawy is buy-side legal counsel.

Tags: