Regulator nod for Abraaj Group’s bid to acquire Bisco Misr

Dubai company to buy the biggest publicly traded Egyptian maker of cakes and biscuits.

Dubai’s Abraaj Group said its tender offer to buy out Bisco Misr, the biggest publicly traded Egyptian maker of cakes and biscuits, has been approved by the North African country’s financial regulator.

The private equity firm said that should its bid for the biscuit maker succeed – it is seeking 100 per cent of the company but will proceed with the takeover only if it gets at least a 51 per cent stake – it will work with the incoming executive chairman Mohamed El Rashidi to grow the business and target both export and domestic markets.

The bid comes amid renewed merger and acquisition activity in Egypt as the country recovers from political turmoil.

Founded 57 years ago, Bisco Misr cranks out such treats as Kahk biscuits, Minto mints and sugar-coated cornflakes.

“Abraaj has developed a robust value creation plan for the company with a strong emphasis on corporate governance,” it said. “Abraaj will further draw on its significant industry experience and strong emphasis on corporate governance.

Abraaj will also draw on “its regional and global networks to create expansion and export opportunities for the company”, it added

In the event that its bid is successful, Abraaj said it would continue to be listed on the Egyptian stock exchange to give minority shareholders a chance to benefit from the company’s growth.

This month, Abraaj made a formal offer of 850 million Egyptian pounds (Dh436.5m) for 100 per cent of Bisco Misr. The 73.91 pounds per share offer was about 10 per cent lower than the last closing price of 79.8 pounds before the offer was made.

“Abraaj will aim to increase dividend distributions to shareholders of the company through the value creation, and also seek the amendment of the articles of association of the company to allow for the payment of interim dividends,” the ompany added.

Bisco Misr’s net profit jumped 51 per cent to 62.7m Egyptian pounds in 2013 from 41.4m pounds in 2012, company data show.

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