CFIN and Tasty Foods merge
The Cairo & Alexandria Stock Exchange announced that February 1 was the final day for investors to submit their shares of Chipsy for Food Industries (CFIN.CA) to Chipsy International for Food Industries (CIFI) in the merger deal between CFIN and PepsiCo Inc. (NYSE=PEP)’s Egyptian subsidiary Tasty Foods. CIFI has offered to buy a maximum of 28,461,048 shares (99.98 percent) and a minimum of 19,072,717 shares (67 percent) of CFIN at LE15.15, a premium of 31.7 percent to the company’s IPO price.
The transaction will be executed on the Cairo & Alexandria Stock Exchange in two to three weeks of the original announcement. It is worth noting that Chipsy International has the right not to execute the deal if the number of shares offered does not reach 19,072,717 (67 percent). After the transaction, the company will be taken private and its shares will cease to trade on the local exchange. Prior to this deal, Tasty Foods-Egypt was the primary competitor of CFIN. The new company will enjoy a joint market share of around 85 percent in the potato chips market.
Misr Beni Suef Cement (MBSC.CA) announced that the company is currently negotiating with F.L.SMIDTH to invest in the company, provide technical expertise for the management of MBSC’s plant and establish a new production line with designed capacity of 1.4 million tons annually.
According to Al-Alam Al Youm newspaper, Omar Al Gemei, CEO of ASIC Group, announced that ASIC aims to increase its stake in Sinai Cement (SCEM.CA) to 15 percent. It is worth noting that ASIC currently owns 5 percent of SCEM and provides technical management of its Sinai plant.
Prime Securities S.A.E.
© 2001 Mena Report (www.menareport.com)