Social Impact Capital’s (SIC) takeover of CIRA Education is nearly sealed, with 96.5% of targeted shares — around 218 mn out of 226 mn shares — responding to the offer by Thursday’s deadline, AlBorsa reports. This brings the total value of the acquisition to EGP 3.4 bn.

The numbers:: SIC now owns some 88.7%, 516.8 mn shares, of CIRA — pre-acquisition SIC held a controlling 51.2% stake in the education player.

Remember: The Public Investment Fund-backed vehicle is trying to increase its stake in the EGX-listed educational services provider to 90% by acquiring an additional 38.78% share for EGP 15.5 a share.

What’s next: The MTO is expected to be wrapped up and shares transferred at some point this week, unnamed sources told the outlet.

SIC was originally hoping to acquire up to 100% of the company, but an amendment earlier this month by CIRA Education canceled a clause that stipulates the voluntary delisting of CIRA’s shares within two years of the acquisition’s execution, This meant that the company subsequently lowered 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%.

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.

Advisors: Rothschild & Co is advising PIF, with Allen & Overy and our friends at Matouk Bassiouny doing legal duties. Our friends at EFG Hermes are advising El Kalla family, while White & Case is legal counsel.

Tags: