Ramsco's Women Empowerment Initiative Recognized Among Top BRICS Businesswomen Practices for 2025    Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    Gold prices end July with modest gains    Pakistan says successfully concluded 'landmark trade deal' with US    Egypt's FM, US envoy discuss Gaza ceasefire, Iran nuclear talks    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Federal Reserve maintains interest rates    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    Rafah Crossing 'never been closed for one day' from Egypt: PM    I won't trade my identity to please market: Douzi    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt's EHA, Huawei discuss enhanced digital health    Egypt, Oman discuss environmental cooperation    Egypt's EDA explores pharma cooperation with Belarus    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Electrolux set to buy Egyptian appliance maker
Published in Daily News Egypt on 11 - 10 - 2010

STOCKHOLM/CAIRO: Sweden's Electrolux has agreed in principle to buy Egypt's Olympic Group, the biggest appliance maker in the Middle East and North Africa, in a push to capture growth in emerging markets.
The world's second-biggest maker of fridges, vacuum cleaners and cookers has had a commercial partnership with Olympic in the region for the last 30 years, letting it distribute brands such as Electrolux, AEG, Frigidaire and Zanussi.
Electrolux said on Monday it had tentatively agreed to pay owner Paradise Capital LE 45.30 ($8) per share for a 52 percent stake and launch an offer for the rest of the company on completion of the deal at the same price.
Based on Olympic's 60 million listed shares, that makes the initial purchase price worth around $480 million before Paradise buys back two non-core units.
Olympic shares had closed on Oct. 7 at LE 30.06.
"(The deal) means that investors can sell at a premium of 50 percent from current prices...it is a huge premium," said Hamed Hashem, equities analyst at investment bank Beltone Financial.
"I don't know if (investors) will opt to stay or get out of (Olympic Group), but it's a very good opportunity to cash in on the company. If they opt to stay, the company has very good potential," Hashem said.
Olympic's shares surged nearly 43 percent on the news and were up 37.1 percent at LE 41.20 by 1020 GMT, while Egypt's main index was flat.
Electrolux shares gained 4 percent, outpacing an 0.5 percent rise in Stockholm's blue-chip index.
"(The deal) is an implicit move (by Electrolux) into emerging markets and obviously it is good to buy your own agent. You don't need to do any rebranding or anything like that. So you can say it is positive," said Peter Naslund, analyst at Swedbank.
Following announcement of the mandatory tender offer for up to 100 percent of Olympic Group, Paradise will launch a tender offer to re-acquire two Olympic non-core assets, Namaa and B-Tech, for LE 13.88 and LE 3.44 per share respectively.
Namaa and B-tech combined contributed around 26 percent of first-half group revenue and around LE 6 million of the group's LE 89.2 million profit in the half.
Excluding Namaa and B-tech, the enterprise value of Olympic will be about LE 2.7 billion, Electrolux said.
The acquisition and pricing is subject to a number of conditions including due diligence to be conducted by Electrolux, Olympic Group said in a statement.
Electrolux said Olympic Group had sales of around LE 2.1 billion in 2009 and an estimated volume market share of approximately 30 percent in Egypt. –Additional reporting by Victoria Klesty in Stockholm


Clic here to read the story from its source.