{"id":623465,"date":"2018-10-31T04:18:36","date_gmt":"2018-10-31T04:18:36","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/10\/31\/medhat-khalil-co-looking-to-submit-mto-for-raya\/"},"modified":"2018-10-31T04:18:36","modified_gmt":"2018-10-31T04:18:36","slug":"medhat-khalil-co-looking-to-submit-mto-for-raya","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/10\/31\/medhat-khalil-co-looking-to-submit-mto-for-raya\/","title":{"rendered":"Medhat Khalil & Co looking to submit MTO for Raya"},"content":{"rendered":"

<\/a> ** #1 M&A WATCH- Medhat Khalil & Co to submit mandatory offer for 100% of Raya? <\/strong>Conflicting media reports emerged yesterday over reports that Raya founder Medhat Khalil is leading a group that will submit a mandatory tender offer (MTO) to acquire 100% of Raya Holding for Financial Investments by 27 November. Khalil, the company\u2019s chairman, was quoted in the local press (here<\/a> and here<\/a>) as saying he would submit an MTO next month to acquire 100% of Raya at EGP 10 per share. The reports claim that Khalil is making the bid after the Financial Regulatory Authority (FRA) ordered that he do so or reduce his holdings, having found that Khalil and related parties control a combined 42% stake in the company. Under securities regulations, going over the 33% ownership mark triggers the MTO requirement.<\/p>\n

The MTO wasn\u2019t ordered by the regulator? <\/strong>Khalil denied in a statement to the EGX (pdf)<\/a> that his company had received any such notice from FRA \u2014 and said that he and his immediate family own less than one third of Raya\u2019s shares.<\/p>\n

Unwinding Raya trades: <\/strong>The news prompted the EGX yesterday to reverse all transactions on Raya\u2019s shares from Monday and Tuesday, the local press claims, meaning the stock is expected to open today\u2019s session at EGP 6.49 per share.<\/p>\n

Khalil is buying at a premium <\/strong>if he goes ahead with the MTO by month\u2019s end. EGP 10 is nearly 45% above the company\u2019s share price prior to the announcement. Shuaa Securities Egypt said in a research note yesterday that \u201cnot only is it relatively [inexpensive], but it is also trading at below book value<\/strong>.\u201d<\/p>\n

What is Raya, anyway?<\/strong> It\u2019s not the same beast that once sold you your beloved Nokia and that bet the house on becoming the nation\u2019s third mobile network operator, losing to Etisalat, well over a decade ago. Today, Raya is an investment company with a private-equity-like mindset. That attitude saw it spin off Raya Contact Centers<\/strong> (Egypt\u2019s largest provider of outsourcing services) last year in an IPO. In addition to Raya Contact Center (where it is still majority shareholder), Raya\u2019s investments today include:<\/p>\n