Chimera to buy 56% from Egyptian company Belton Financial
Egyptian Stock Exchange announced the execution of the compulsory purchase offer submitted by the UAE company Chimera on the shares of Beltone Financial, for 259,121,821 shares, with a total value of 384,795,904 Egyptian pounds.
The Egyptian Stock Exchange management said that the total initial quantities offered in response to the offer made by Chimera to buy Beltone Financial by the end of its validity period amounted to 259,121,821 shares, or 56%.
Analysts attributed the decrease in the quantity offered for sale to the rise in the share price on the trading screens, compared to the purchase offer price submitted by the Emirati company, which amounted to 1.48 pounds.
While Chimera aimed to acquire Beltone shares up to 417.13 million shares at 90%, the company is committed to implementing the offer up to only 51% as a minimum, as specified in the purchase offer submitted to the Financial Supervisory Authority.
It is noteworthy that the board of directors of Orascom Financial recently agreed to respond to Chimera's offer to acquire all or some of Beltone's financial shares.
“The conclusion of the Beltone acquisition is directly in line with our long-term expansion strategy. We will, over the coming period, look to unlock value and implement an all-encompassing transformation plan, aimed at restoring growth and profitability to Beltone,” said Syed Basar Shueb, chairman of Chimera Investment LLC
In mid-June, the UAE-based company submitted an offer to the Egyptian Financial Regulatory Authority (FRA) to acquire between 51% and 90% of Beltone Financial Holding at EGP1.485 per share. A few weeks later, Orascom Financial Holding (OFH), Beltone's majority shareholder at the time, agreed to sell about 56% of its stake in the investment bank and financial services firm to Chimera. The transaction received all the required internal and administrative approvals.
The acquisition is part of Chimera’s strategy to extend its footprint in the Middle East and North Africa (Mena) region and to continue its long-term investments in regional economies.
Chimera also revealed the appointment of Dalia Khorshid, a former Egyptian Minister of Investments, as the new CEO of Beltone. She will oversee a strategic transformation plan, which aims to restore profitability in a company that has been unprofitable for some years, and transform it into a “major market leader.”