The Abraaj Group, a leading investor operating in global growth markets, has today announced that it has decided that it will not continue to participate in the competitive bidding process for the acquisition of up to 100 percent of the share capital of Egyptian BiscoMisr, a leading baked goods and confectionery manufacturer.
Abraaj’s latest offer, through one of its Funds, for the acquisition of the Company was made on December 24, 2014, when it further increased its offered purchase price per share to EGP 88.09, amounting to a total purchase price for the Company of EGP 1 billion. Abraaj’s latest offer also included a provision to allocate shares with a value of around EGP 100 million towards implementing a long term employee incentivization and retention program to benefit all BiscoMisr employees. Further to Abraaj’s last offer, Kellogg has increased its own offer price to EGP 89.86 per share.
Abraaj believes that the employees and various stakeholders of Bisco Misr have built a strong brand and a company with strong future potential. Abraaj wishes BiscoMisr and Kellogg success, and trusts that Kellogg will, following the successful completion of its tender offer, continue to preserve and grow this Egyptian national icon, and invest in the professional development of BiscoMisr’s employees, who are the key pillar of the Company’s past and future success.
Abraaj believes that the fair, orderly and transparent bid process for BiscoMisr clearly validates the growing investor interest in Egypt. Abraaj is positive on the long-term prospects of the consumer sector specifically, and the investment opportunities in general, in Egypt. We expect to see significant investment activity in the country over the coming months given Egypt’s attractive underlying growth potential and its recent positive economic traction.