UAE-based firm linked to Samih Sawiris nears 90-percent acquisition of OFH in $137.5-million deal

Yusuf Abdulfatai -

B Investments, a UAE-based firm partly owned by Egyptian billionaire Samih Sawiris, is on the verge of finalizing a significant acquisition, aiming to secure up to 90 percent stake in Orascom Financial Holding (OFH), a cornerstone of the Sawiris family’s financial portfolio.

The transaction, valued at EGP4.25 billion ($137.51 million), is set to be executed through a share swap arrangement. According to a Fair Value (FV) report released on Wednesday by Grant Thornton Egypt and published on the Egyptian Exchange, OFH’s stock is appraised at EGP0.44 ($0.0142), while B Investments’ stock stands at EGP22.73 ($0.735).

Currently, OTMT Acquisition company, established in Luxembourg by the Sawiris family, holds the majority stake in OFH at 51.6 percent. It is worth noting that 524.57 million OFH shares, out of a total of 5.24 billion, are excluded from the deal due to being treasury stocks, held by the company for future disposition.

Regulatory milestone: Acquisition progress hinges on approval from FRA, EGX, and MCDR

Notably, the report has revised the share swap ratio to 51.15 OFH shares for each B Investments share, a strategic adjustment from the previous 56.76/1 ratio. The major shareholders in B Investments include RIMCO Investments (10.6 percent), Sawiris (9.2 percent), and European Investment Bank (6.5 percent).

The completion of this acquisition is contingent upon obtaining approvals from regulatory bodies, including the Financial Regulatory Authority (FRA), the Egyptian Exchange (EGX), and Misr Clearing, Depository, and Central Registry Company (MCDR).

Egyptian billionaire Samih Sawiris pivots investments to Saudi Arabia, unveils ambitious red sea tourism project

In a broader context, Egyptian billionaire Samih Sawiris, a prominent shareholder in B Investments, has recently announced plans for a substantial tourism project in Saudi Arabia’s Red Sea region.

This strategic move underscores Sawiris’ commitment to diversifying his business ventures and shifting focus to Saudi Arabia temporarily. The decision is part of a broader strategy to navigate economic challenges in Egypt, with Sawiris signaling a pause in new investments in the country until stability is restored.

His net worth, declining from $2.7 billion in 2007 to $850 million, reflects the impact of a challenging macroeconomic environment and the Egyptian pound’s weakness.