{"id":619017,"date":"2024-04-23T00:00:00","date_gmt":"2024-04-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/23\/this-evening-b-investments-board-gives-the-green-light-to-capital-increase-ahead-of-ofh-acquisition\/"},"modified":"2024-04-23T00:00:00","modified_gmt":"2024-04-23T00:00:00","slug":"this-evening-b-investments-board-gives-the-green-light-to-capital-increase-ahead-of-ofh-acquisition","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/23\/this-evening-b-investments-board-gives-the-green-light-to-capital-increase-ahead-of-ofh-acquisition\/","title":{"rendered":"THIS EVENING: B Investments' board gives the green light to capital increase ahead of OFH acquisition"},"content":{"rendered":"

Good afternoon, ladies and gentlemen, and happy Tuesday. <\/strong>We\u2019re already in the middle of an abridged workweek, but can\u2019t say we\u2019re not happy that we have another long weekend to look forward to soon. <\/p>\n

PSA- We\u2019re ringing in May with another short workweek:<\/strong> The public and private sectors will be off on Sunday, 5 May<\/strong> in observance of Labor Day, and Monday, 6 May<\/strong> in observance of Coptic Easter, according to a cabinet statement<\/a>.<\/p>\n

THE BIG STORY TODAY<\/strong><\/p>\n

We\u2019re nearing the finish line of B Investments\u2019 OFH acquisition: <\/strong>Private equity firm B Investments\u2019 board yesterday approved a decision to increase the company\u2019s share capital ahead of its share swap agreement with Orascom Financial Holding (OFH), the company said in a disclosure (pdf)<\/a>. The company will issue some 58.3 mn shares at a value of EGP 5 per share \u2014 raising its capital from EGP 800 mn to some EGP 1.09 bn, according to our calculations.<\/p>\n

What\u2019s next?<\/strong> B Investments will now need to complete the share swap \u2014 its board had agreed to a share swap ratio of one B Investments share to 56.76 OFH shares.<\/p>\n

B Investments is snapping up a majority stake in OFH<\/strong>,after owners of some 3.3 bn shares \u2014 a 70% stake in the company \u2014 have responded to B Investments\u2019 MTO for up to 90% of OFH, according to an EGX disclosure (pdf)<\/a>.<\/p>\n

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Foreign investors are falling in love with Egypt again\u2026<\/strong> Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They\u2019re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that\u2019s taking shape after the float of the EGP, and our competitive advantages are clear to many of them: We\u2019re a massive consumer opportunity and the regional export hub of tomorrow.<\/strong><\/p>\n

\u2026but here at home, our community is in a rut.<\/strong> The enthusiasm gap between domestic business leaders and global investors is stark. <\/p>\n

We\u2019d all do well to remember: It\u2019s a chicken-and-egg kind of thing. <\/strong>Foreign strategic investors will be reluctant to commit capital here until they see Egyptian businesses leading the way.<\/p>\n

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: <\/strong>Spark conversations about a future that we think is much brighter than so many in our community feel right now. Think of it as much-needed shock therapy combined with an early, actionable roadmap for those of us who are \u201clong Egypt.\u201d<\/p>\n

We\u2019ll be talking with you about the agenda over the coming couple of weeks.<\/strong>It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow\u2019s opportunities \u2014 and who aren\u2019t afraid to answer some tough questions. <\/p>\n

*** Interested in attending? <\/strong>Tap or click here<\/a><\/strong> to let us know.<\/strong> Seating is limited. <\/p>\n

<\/a> <\/p>\n

THE BIG STORY ABROAD<\/strong><\/p>\n

Trump\u2019s hush money trial and ongoing Palestine protests on university campuses in the <\/strong>US <\/strong>are leading the conversation in the international press. <\/strong>The trial of former president Donald Trump is about to take a dramatic turn as prosecutors are preparing to question David Pecker, ex-publisher of The National Enquirer, who is accused of concealing \u201cdamaging\u201d news about Trump as he prepared for his presidential campaign. Meanwhile, the New York Police Department cleared an encampment of pro-Palestinian New York University students while California State Polytechnic University Humbolt had a sit-in inside a building and barricaded others from entering. (NYT<\/a> | Washington Post<\/a>)<\/p>\n

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