B Investments eyes majority stake in Orascom Financial via share swap

B Investments eyes majority stake in Orascom Financial via share swap

Egypt-based private equity firm B Investments Holding’s (BINV) board of directors approved acquiring a minimum of 51 per cent and up to a 90 per cent stake in Orascom Financial Holding (OFH) via share swap, B Investments said in a statement sent to the Egyptian Exchange (EGX).

Established in 2006, B Investments is a growth capital investor that pulls a wealth of expertise to actively create value in its portfolio of companies.

The largest shareholders in B Investments are UAE’s RIMCO Investments (10.6 per cent), Samih Onsi Sawiris (9.2 per cent), European Investment Bank (6.5 per cent), and Saudi Rolaco EGB Investment (5.2 per cent).

The transaction will be conducted via a share swap ratio of 1 share of B Investments’ shares, based on its total share capital of 160.024 million shares for 56.76 shares of OFH, based on 4.721 billion shares of the company’s capital, excluding treasury shares.

The board also approved signing an agreement with OFH’s main shareholder “outlining the general framework for executing the acquisition, and under this agreement, the main shareholder will be required to accept the offer from the potential purchaser.”

The main shareholder in OFH (51.6 per cent) is OTMT Acquisition company, which was established in Luxembourg by the Sawiris family. 

Onsi Sawiris, who passed away in June 2021, built the family’s fortune by founding the Orascom conglomerate in 1950. 

The conglomerate’s activities span the construction, tourism, telecommunications, technology, and industrial sectors. B Investments’ board of directors authorized the chairman to appoint an independent financial advisor to determine the fair value (FV) of the share price of B Investments Holding and OFH.

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