M&A WATCH- Raya board agrees to Medhat Khalil’s MTO: Raya Holding’s board of directors has approved a mandatory tender offer (MTO) from Chairman Medhat Khalil through his El Pharonia Real Estate Investment for nearly 37% of Raya (78.6 mn shares), according to an EGX disclosure (pdf). The MTO kicked off on 11 March at EGP 5.53 per share, a slight premium to the EGP 5.35 at which it had last closed prior to the takeover bid.

Background: The Financial Regulatory Authority had ordered Khalil last year to submit an MTO for Raya or sell down his stake, arguing that he and related parties controlled a combined 42% of the outfit, a level of control that triggers the requirement for an MTO under securities regulations.

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