The board of Egypt’s Orascom Telecom Media and Technology Holding has approved its joint offer with investment bank Act Financial to acquire Beltone Financial. The takeover forms part of Naguib Sawiris’ company’s plans to diversify into sectors such as financial services.
The board of Egypt’s Orascom Telecom Media and Technology Holding (LSE:OTMT) has approved its joint offer with investment bank Act Financial to acquire Beltone Financial (CA:BTFH).
Naguib Sawiris’ (pictured) holding company said in a statement that the offer is conditional upon it acquiring at least 51% of Beltone shares. OTMT would obtain 53% of the shares offered, while Act Financial would get 13%. Any remaining shares offered would go to OTMT.
The Egyptian Financial Supervisory Authority said in its own statement that it is assessing OTMT and Act Financial’s offer to acquire Beltone at E£4 (US$0.50) per share.
Cairo-based OTMT announced early this month that, together with Act, it had submitted a letter of intent to acquire Beltone, also based in the Egyptian capital, as part of plans to diversify into other sectors, including financial services, energy and transport and logistics.
The deal would be worth an estimated E£650m (US$80.9m) and is expected to be executed in Q4 this year, the holding said. Beltone has a market capitilisation on the Egyptian bourse of E£584.5 (US$72.7m).
OTMT holds various TMT investments, mainly in Egypt, North Korea, Pakistan and Lebanon.
Act, founded earlier this year, specialises in securities brokerage, asset management and investment in Africa and the Middle East.
Beltone, established in 2002, has offices in Cairo, Dubai, Doha, Tripoli, Benghazi, London and New York.