Kellogg’s to acquire 85.93% stake in Bisco Misr

Kellogg’s is set to acquire an 85.93% stake in Bisco Misr after shareholders of the Egyptian biscuit maker agreed to sell their shares.

According to the Egyptian stock exchange, shareholders controlling 86% of shares in Bisco Misr agreed to sell their shares to US firm for a total of $125m as the bidding period ended last Sunday, Reuters reported.

Kellogg was the sole bidder for the acquisition of Bisco Misr since private equity investing firm Abraaj Group withdrew from the competitive bidding process on 31 December 2014.

Abraaj, which was offered $12.39 per share, said in a statement that it has decided ‘it will not continue to participate in the competitive bidding process for the acquisition of up to 100% of the share capital of BiscoMisr’.

The bidding competition between Abraaj and Kellogg’s increased the offer price of Bisco Misr by more than 20%.

The US firm secured the support of shareholders controlling nearly 60% of shares of the Egyptian company last week, the news agency reported.

Kellogg’s, which raised its offer to EGP89.86 per share on last week of December, was interested in buying 100% shares of the company.

According to Kellogg Company spokeswoman Kris Charles, the company will provide further details after the final transfer of the shares that is expected to be on or around January 18 2015.

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Image: Kellogg to buy majority stake in Egyptian confectionery maker Bisco Misr. Photo courtsey of Freedigitalphotos.net.