Sunday 22 Dec
The Sawiris family, through their wholly-owned company LPSO Holding Ltd, has submitted a tender offer to acquire all outstanding shares of Orascom Development Holding. The family currently holds a 77.5% stake in the company, with the remaining 22.5% publicly traded.
According to a disclosure to the Egyptian Exchange, the tender offer aims to consolidate ownership and streamline management of Orascom Holding's diverse portfolio, which includes real estate, tourism, hospitality, construction, resort management, real estate finance, and related businesses. The offeror believes that private ownership will enable more efficient management and better capitalize on development opportunities.
Following the successful
completion of the tender offer, LPSO intends to delist Orascom Holding from
both the Egyptian and Swiss stock exchanges.
The statement pointed out that while
delisting does not typically require a public tender offer, the Sawiris family
recognizes that delisting would restrict shareholders' ability to easily sell
their shares. To provide shareholders with a clear exit opportunity, the family
has chosen to initiate this tender offer before delisting Orascom Holding.
The tender offer price is set at
5.60 Swiss francs per share, representing a significant premium of 40.7% over
the 60-day volume-weighted average price and 38.3% over the closing price on
December 16, 2024. An independent valuation by IFBC AG determined a fair value
range of 3.76 to 5.26 Swiss francs per share.
Regarding the tender offer timeline, the company stated that it will proceed in three phases: the first is the offer period from January 9 to February 5, 2025; the second is the additional acceptance period second phase from February 12 to February 25, 2025; and the third phase is the settlement of the offer on March 11, 2025.
