CIRA Education to submit an MTO to up its stake in CAED to up to 90%

CIRA Education will submit a mandatory tender offer (MTO) to up its stake in EGX-listed subsidiary Cairo for Educational Services (CAED) to up to 90% from the current 69.4%, according to an EGX disclosure (pdf). CIRA is looking to snap an additional 20.6% of its subsidiary — represented in 2.5 mn shares — at an initial price tag of EGP 30 per share, putting the total transaction value at some EGP 74.2 mn by our math.

We knew this was coming: CIRA Education is required to submit an MTO for a bigger stake in CAED after Social Impact Capital increased its stake to from 51.2% to 88.7% in the nation’s leading private-sector education company.

A delisting isn’t part of the plan: CIRA plans to keep CAED listed on the exchange if the MTO goes through.

Market reax: CAED closed at EGP 28.95 during Thursday’s trading — its shares rose 10.6% during yesterday’s trading to EGP 32.02 following the news.