Raya chairman to form alliance with businessmen to acquire 58% stake

Thursday 01 November 2018 01:03 PM

Raya
Raya


By Ahmed Aly:
Chairman of Raya Holding Medhat Khalil considers tying up with investors to submit a mandatory tender offer (MTO) to purchase 58% of his company’s shares.
Financial Regulatory Authority (FRA) has issued a decision obliging him and his related parties to buy 58% stake complementing his 42% original stake.
Khalil said that he explores entering into an alliance with investors to secure required liquidity to acquire 58% of the firm’s shares, which are valued at EGP 500mn, adding that he plans to initiate discussions with investment banks such as EFG-Hermes to find the best way to resolve the problem.
Last Monday, FRA announced that Khalil and related parties must submit a mandatory tender offer or reduce his holdings since the businessman and related parties control a combined 42% stake in the company. Under securities regulations, going over the 33% ownership mark triggers the MTO requirement.
FRA requested Raya Holding to submit the MTO provided that the share price must be no less than the average trading price over the last 6 months.
“Having studied the current situation accurately, I found that submitting MTO to buy the remaining 58% stake would require a high level of liquidity that cannot be secured within the period set by FRA”, Khalil said.



فيسبوك
تويتر
يوتيوب