Egypt’s Pioneers Holding said on Sunday it has made a compulsory offer to acquire all of Electro Cable Egypt as part of its strategy to use revenues from a capital increase in October to grow its business.
Pioneers Holding, which operates financial services and other businesses, owns 48.5 percent of Electro Cable Egypt, one of the oldest cable companies in the Middle East.
It said in a statement that it has bid to buy the rest of Electro Cable, which it says has a capitalisation of 711.5 million Egyptian pounds ($40 million).
Pioneers said it had made the offer through one of its subsidiaries at a price of 1.35 Egyptian pounds per share, reported Reuters.
“Acquiring Electro Cable Egypt will be a real addition to our investment portfolio and will strongly support the group’s revenues during the coming period...,” it said in a statement said.
The board of Pioneers Holding approved in April to invest LE 2.9 billion in a year.
Pioneers marked a gross of 5.3 percent in its annual profits to reach LE 1.14 billion before minority, compared to LE 1.08 billion in 2016. Pioneers Holding is a public company, listed on the Egyptian Exchange (EGX) since June 2008.
It operates within the diversified financial sector focusing on investment banking and brokerage, with a capital of LE 3.6 billion, distributed over 708.4 million shares at a par value of LE 5 per share.
It has 34 subsidiaries operating across North America, North Africa and the Middle East.