Arabiyya lel Istithmaraat, an Egyptian investment firm, canceled its plan to buy an 85 percent stake in Egypt’s Omar Effendi department stores, citing “unacceptable” findings in its study of accounts.
“We agreed to buy Omar Effendi based on certain disclosures from the seller which turned out not to be true,” Investor Relations Director Amr Sadek said today by telephone. “So we decided not to move forward.”
The Cairo-based company said in October it had agreed to buy the 154 year old department-store chain from Anwal of Saudi Arabia for 320 million Egyptian pounds ($55 million). Anwal had acquired the stores from the Egyptian government in 2007 before the country’s privatization drive was brought to a halt by the global financial crisis.
Arabiyya shares fell 1 percent, the most in more than two weeks, to 96 piasters in Cairo, valuing the company at 513 million Egyptian pounds.
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