Olympic Group Financial Investment Co. SAE rose to the highest level since January after Electrolux AB (ELUXB) agreed to buy a controlling stake in the Egyptian appliance maker in a deal that values Olympic at $410 million.
The shares gained 6.6 percent to 38.4 Egyptian pounds at the 2:30 p.m. close in Cairo, the highest level since Jan. 26. That valued the Cairo-based company at 2.31 billion pounds ($388 million). The benchmark EGX 30 Index (EGX30) dropped 2.9 percent.
Electrolux said it will acquire a 52 percent stake from Paradise Capital and offered to buy the remaining shares at 40.6 pounds each. Electrolux, which had agreed in October to buy the stake from Paradise, suspended the acquisition Feb. 2 after the start of anti-government demonstrations in Egypt. The Swedish company resumed talks after Hosni Mubarak’s regime was toppled.
Under the terms of the deal, Electrolux will sell Olympic’s stakes in Namaa for Development & Real Estate Investment Co., an Egyptian construction and real-estate company, and B-Tech (OSTD), a Cairo-based chain of stores that sell household appliances, to Paradise Capital for about 450 million pounds. That means the transaction values Olympic at 2.45 billion Egyptian pounds, according to the Electrolux statement.
Namaa, 41 percent-owned by Olympic as of the end of 2010, climbed 9.7 percent to 12.35 pounds, the highest since Jan. 24. B-Tech, 48 percent-owned by Olympic at the end of 2010, rose 9.4 percent to 3.03 pounds, the highest since Jan. 17.
To contact the reporter on this story: Ahmed A Namatalla in Cairo at email@example.com
To contact the editor responsible for this story: Claudia Maedler at firstname.lastname@example.org