CIRA Education’s bid to raise its stake in Cairo for Educational Services (CAED) to 90% secured the Financial Regulatory Authority’s (FRA) approval, clearing the way for a mandatory tender offer (MTO) to buy up to 20.6% of the company, or 2.47 mn shares, at EGP 32.7 a share, according to a bourse bulletin. This would value the transaction at EGP 80.8 mn, according to EnterpriseAM math. The regulator said CIRA has two days to publish the MTO. We have reported earlier that CIRA plans to keep CAED listed on the exchange if the MTO goes through.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

ADVISORS- Our friends at EFG Herms are serving as brokers on the transaction, while Matouk Bassiouny & Henawy is providing counsel.

SPANISH ITI TO ACQUIRE STAKE IN BMIC-

South Valley Cement’s BoD greenlights stake sale: South Valley Cement’s board approved selling the firm’s entire 47.6% stake in Building Materials Industry Company (BMIC) to Spanish firm Inversiones en Tecnologia Industrial (ITI), the company said in an EGX disclosure (pdf). The price of EGP 2 a share values the transaction at EGP 584 mn. ITI’s acquisition is part of its expansion plan into North Africa and has already received approval from the Egyptian Competition Authority.

The sale price is 60% above the fair value of EGP 1.25 per share set by Moores Rowland Egypt in its independent valuation (pdf) of the company. This implied a fair value of about EGP 366 mn for South Valley Cement’s entire stake.

REMEMBER- Ashry Steel was also reportedly competing for a stake in BMIC, with unconfirmed media reports earlier this month saying that the local steel company had submitted a bid for the entirety of the company. Ashry reportedly raised its offer to EGP 1.3 bn for 100% of BMIC — roughly 6% higher than ITI’s bid — with the value covering both the transaction and the company’s existing debts, Asharq Business reported over the weekend, citing unnamed sources.

IN OTHER M&A NEWS-

ALSO- Raya Holding submitted a draft MTO to increase its interest in Raya Customer Experience (Raya CX) to 90% from 60.8%, according to a statement (pdf) from the authority. The offer is pitched at EGP 7.5 per share, the higher end of the range initially set, valuing RCX at EGP 1.54 bn. The FRA noted the filing is still under review. If approved, the move would give Raya Holding near-total ownership of the outsourcing company.

DIVE DEEPER- We sat down with Raya Holding CEO Ahmed Khalil last month to learn more about the potential transaction — check out the interview here.

AND- Saudi’s Alinma Investment sold its entire 14.9% stake (some 833k shares) in EGX-listed Delta Printing and Packaging for EGP 71.9 mn, according to an EGX disclosure (pdf). The transaction was priced at an average of EGP 86.3 per share.

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