CAIRO: Raya Holding posted a remarkable increase in second quarter net profit as major shareholders rejected Orascom Telecom's offer to acquire 100 percent of the company's shares traded on the bourse. Raya's independent financial adviser evaluated its shares at between LE 19.72 and 22.14, way above OT's initial offer to acquire Raya's shares at LE 12 per share, a deal worth LE 683.34 million. Mehat Khalil, chairman and managing director of Raya Holding, reportedly said that OT's offer was "naïve and that investors did not consider selling their shares. Raya posted on Monday a sevenfold increase in its second quarter net profits which climbed to LE 11.8 million, compared to LE 1.7 million in the same quarter last year. Net profit for January-June 2007 amounted to LE 66.3 million, up from LE 527,000 in the same period last year, on the back of an LE 54.4 million capital gain from the sale of Raya Telecom to Vodafone Egypt. Raya has lately been witnessing heavy trading on its shares, which jumped to LE 14-15 per share during this week's trading. The company also approved yesterday distributing a dividend of LE 0.75 per share, reflecting the company's surplus in liquidity. Such steps might fend off OT's takeover. HC Securities brokerage firm finds OT's offer undervalued and estimates Raya's shares to be worth LE 15 per share. Rumor has it that OT will make a new bid for Raya, however OT's officials were not able to comment on that at time of press.
