(MENAFN- Daily News Egypt)
Egypt's financial Regulatory Authority (FRA) announced on Sunday that Emirati firm Electra investment Holding has submitted an offer to acquire a 24.5% stake in Elsewedy Electric, the Arab world's largest listed cable manufacturer, at $1.05 per share.
The FRA is currently reviewing the offer, according to a statement published on the Egyptian Exchange (EGX) website. Elsewedy Electric's shares surged 20% to EGP 44.4 per share during Sunday trading on the EGX.
Established in 1997, Elsewedy Electric is involved in the production of electric cables, poles, towers, transformers, electrical breakers, and connection accessories, as well as the design, construction, operation, and maintenance of power plants.
Electra Investment Holding's offer, submitted to the FRA, stipulates a minimum purchase of 15% of Elsewedy Electric's shares for the deal to proceed. The Elsewedy family currently owns approximately 68.1% of the listed shares, with the remaining percentage held by investment funds, financial portfolios, and small investors on the EGX.
Elsewedy Electric's consolidated profits soared 93.5% year-over-year in 2023, reaching EGP 11.137bn, while consolidated revenues increased 65% to surpass EGP 152.1bn.
The company's strong first-half 2024 performance, with a 78% year-over-year jump in revenues to EGP 69.63bn, was attributed to increased production in its factories outside Egypt and a rise in exports, according to previous statements by Sherif El-Zeiny, Vice President and CFO of Elsewedy Electric.
The company's presence in over seventy countries and increased production in its factories abroad, such as Saudi Arabia and Algeria, have helped mitigate the impact of the surrounding economic conditions, the devaluation of the Egyptian pound, the supply chain crisis, and inventory challenges.
El-Zeiny added that the significant depreciation of the Egyptian pound has made the company's products more competitive, boosting exports, particularly to Europe, with Britain being the largest importer of the company's cables.
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