FRA blocks Sagasse’s bid to take full control of Elsewedy Electric: Egypt’s Financial Regulatory Authority (FRA) rejected a mixed cash-and-share acquisition offer submitted by Abu Dhabi-listed holding company Sagasse Investments to acquire 100% of EGX-listed industrial heavyweight Elsewedy Electric, citing governance, valuation, and minority rights concerns, the regulator said in a statement (pdf).

The details of the offer: Sagasse wanted to offer EGP 65 per share in banknotes or via share swap through newly-issued Sagasse stock. The Abu Dhabi-based firm already holds an indirect 18.9% stake in Elsewedy Electric through its main subsidiary Electra Investment Holding.

The FRA said the proposed structure violates market fairness and investor protection principles, and raised concerns over a potential conflict of interest given Sagasse’s indirect stake in Elsewedy, warning that private negotiations with major shareholders could undermine equal treatment of investors. The watchdog also said the offer, if executed, could distort trading dynamics while Elsewedy remains listed on the EGX.

It also pointed to Sagasse’s limited track record and lack of operating assets, saying its shares cannot form a credible valuation basis for a swap offer.

ICYMI- Electra’s acquisition had reshaped Elsewedy’s freefloat profile, leading to its removalfrom the EGX’s main index earlier this year. The drop in trading activity had prompted speculation over a potential delisting, which Elsewedy dismissed, reiterating it has no plans to leave the EGX and remains committed to its listing..

REMEMBER- The 2PointZero-owned vehicle debuted on the ADX’s Growth Market earlier this year, and reported USD 312.8 mn in net income in 2023. The company booked USD 325.4 mn in interest income against USD 3.6 mn in expenses.

IN OTHER M&A NEWS-

Qashio enters Saudi market with SanadCash acquisition: Dubai-based B2B spend management platform Qashio acquired Saudi fintech SanadCash for an undisclosed sum, marking its entry into the Saudi market, according to a press release. The two firms will build a “unified platform that simplifies how companies manage spending” and that enhances financial transparency, the statement said.

REMEMBER- Qashio raised USD 19.8 mn in May to finance its Saudi expansion and scale its B2B fintech loyalty program. The round — led by Rocketship VC with participation from ABN Ventures and regional investors — supports regulatory compliance and growth across Mena, Europe, and the UK.

Next step, scaling up operations: Over the next six months Qashio plans to hire over 120 new employees across key markets, including KSA, Europe, the UK, and the UAE, to support its expansion and product rollout.

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