The Financial Supervisory Authority in Egypt said that Expedition Investment, a company established in alliance with some investors and the institution in accordance with the laws of the State of Mauritius, submitted, today, Sunday, a letter that includes announcing its intention to submit a non-binding purchase offer on the shares of a company Arab Food Industries “Domty”listed on the Egyptian Stock Exchange.
According to a statement by the authority, on the Egyptian Stock Exchange website, the alliance offered to acquire up to 90% of Domty shares at an initial price of 5 pounds per share.
It shall be decided whether or not the final offer shall be submitted in light of the results of the due diligence examination.
The consortium of investors submitted to the acquisition offer includes the Chairman of the Board of Directors of Domty Company Omar Mohamed Abdel Hamid Al-Damaty, and the Managing Director of Domty Company Mohamed Omar Mohamed Abdel Hamid Al-Damaty, who are two major shareholders as a group associated with the target company, and they are members participating in the alliance with minority stakes in the company submitting the offer.
Domty’s ownership structure is divided between Saudi businessman Yahya Muhammad Awad bin Laden with 15.65%, Trevi Holding – Cayman Islands with a share of 11.53%, Omar Muhammad Abdul Hamid Al-Damati with a share of 9.19%, Zainab Muhammad Abdul Hamid Shaheen with a share of 7.22%, and Nas Russell Investments with 6.28 %, and Mohamed Omar Mohamed Abdel Hamid Al-Damaty with a share of 1.91%, and others.
For her part, Senior Analyst for the Consumer Sector at Beltone Financial Holding Company, Nevin Ghanima, said that the consortium submitted a request to submit an acquisition offer on “Domty” company, and there is not much information regarding it other than the disclosure submitted, which includes the founder of “Domty” and the managing director who owns a minority stake in the advanced company. acquisition request.
She added in an interview with Al-Arabiya, today, Sunday, that the price offered in the acquisition of 5 pounds is less than the fair value of the share set by Beltone at 7 pounds.
Nevin Ghanima explained that it should be borne in mind that the performance of “Domty” stock has been weak during the last period and has not exceeded the 5 pound barrier since March 2021, which is a good opportunity for investors to achieve some profits in the stock, noting that it is trading at a profit multiple of 9 times, according to expectations. earnings for 2021.
She said that Domty’s profits declined by 50% in 2021, as a result of the pressure of the high cost of raw materials, and the company exited in the first half of 2021 from using agents in sales of white cheese and achieved losses in that half, and therefore it is expected to achieve a significant increase in profits during 2022.
And a senior analyst in the consumer sector at Beltone expected that Domty would achieve a net profit of 150 million riyals in 2022.
She explained that it is possible to cancel the listing of “Domty” on the Egyptian Stock Exchange when the potential acquisition is implemented.
