Beltone Surges After Getting Offers for Brokerage: Cairo Mover
Beltone Financial Holding (BTFH) rose the most in more than a month after the Egyptian investment bank seeking to sell its brokerage business said it got two offers including one from an international investment bank.
The shares surged 8.9 percent to 13.13 Egyptian pounds at the 2:30 p.m. close in Cairo, trimming this year’s decline to 2.8 percent. The EGX 30 Index (EGX30) lost 0.6 percent to 5,032.98, the lowest since Feb. 22.
Beltone, ranked fourth by traded value in Egypt last year according to data on the Egyptian Exchange website, said the second offer came from a local investment company. It didn’t identify the bidders. The benchmark EGX 30 Index, which tumbled 49 percent in 2011 after the country’s popular uprising, has gained 39 percent this year.
“Beltone is going to be sold on very cheap multiples,” said Wafik Dawood, director of institutional sales at Cairo- based Mega Investments Securities. “The buyer will acquire a strong firm with a strong institutional base of locals and foreigners, in a market that will potentially be among the best performing in the coming couple of years.”
Beltone said Feb. 1 that Chief Executive Officer Aladdin Saba aborted the sale of his 20 percent stake in the company to Arabia Investments & Development & Financial Investments Holding Co. (AIND) Since then, the company announced plans to sell its brokerage and its building in Cairo’s Smart Village business park. Beltone reported a loss of 18.8 million Egyptian pounds ($3.1 million) in the first nine months of 2011.
The company will also seek the approval of shareholders on April 17 to sell the building for 80 million Egyptian pounds, it said in the statement today.
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