UAE’s Abraaj increases bid to acquire Egypt’s Bisco Misr

UAE-based Abraaj investment management has increased its offer to $127.9m for the acquisition of 100% shares of Egyptian confectionary producer Bisco Misr.

Abraaj will now be bidding EGP79.10 ($11.06) per share after its initial offer of EGP73.91 which has edged out competitor Kellogg’s that had offered 79 pounds per share proposed last week.

Abraaj has not disclosed the reason for increase in bid price.

The Abraaj group has applied to the Egyptian Financial Supervisory Authority (EFSA) for its approval in accordance with Article 344 of the executive regulations of the capital market law no 95/1992 on the amendment of its tender offer.

Speaking about its future goals, the company said in a statement: "As detailed in the tender offer announcement approved by EFSA, in the event the offer is successful, Abraaj will work closely with the company’s Egypt-based management and provide full support to Egyptian industry expert, Mohamed El-Rashidi, as incoming executive chairman of the company to develop and grow the company into a pre-eminent Egyptian branded snacks business based in Egypt, managed from Egypt and targeting the local and export markets."

The company further said that it would use its experience to provide the Egyptian company with expansion and export opportunities besides assistance to develop new products that will form part of a compelling offering in sweet and savoury snacks.

In the event that the transaction is successful, Abraaj plans to continue keeping Bisco listed on the Egyptian Stock Exchange.

Bloomberg reported that Bisco has already turned down offers from Juhayna Food Industries and Saudi Arabia’s Halwani. It owns three factories, where it produces biscuits and a variety of cakes and wafers.

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Image: UAE’s Abraaj is offering $127.9m for acquiring Egyptian confectionary maker Bisco Misr. Photo: courtesy of Suat Eman.