Meed | Electra Investment completes Elsewedy acquisition

Electra Investment completes Elsewedy acquisition

10 July 2024

The UAE’s Electra Investment Holding has completed the acquisition of a 19.98% stake, valued at $449m, in Egypt’s Elsewedy Electric.

Cairo-headquartered investment bank EFG Hermes acted as the sole financial adviser to Electra Investment Holding for the acquisition.

According to EFG Hermes, Electra successfully submitted its voluntary tender offer to acquire up to 24.5% of Elsewedy Electric at a purchase price of $1.05 a share.

This move resulted in Electra securing 19.98% of Elsewedy Electric’s total outstanding share.

The deal is one of the largest foreign direct investment merger and acquisition transactions in Egypt and the broader region so far in 2024, said Maged El-Ayouti, co-head of investment banking at EFG Hermes.

The investment bank has advised on other transactions in recent months. These include Egypt’s Icon Holding’s acquisition of seven historical hotels in Egypt, accompanied by the capital raising in Icon for ADQ and Adnec, and Global Investment Holding’s acquisition of 30% of Eastern Company.

Established in 1997, Elsewedy Electric is involved in producing electric cables, poles, towers, transformers, electrical breakers and connection accessories, as well as designing, constructing, operating and maintaining power plants.

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Jennifer Aguinaldo