Private equity firm Actis is not planning to exit from Edita Food Industries, following the selling of 15% of its shares, Investment Manager of Actis Sherif El-Kholy told Daily News Egypt on Monday.
El-Kholy explained that they will exit Edita after they feel that they have achieved the required result of the investment “as any private equity investment”.
On the second day of Edita trading, Actis, that was acquiring 30% in Edita, announced that it is has partially exited from the food maker company by selling a 15% stake as part of the stock offering.
In June 2013, Actis invested $102m to acquire a 30% stake of Edita at a rate of $46.8 per share, which has a nominal price of EGP 10. The transaction, which was brokered by HC Securities, reflected Actis’ optimism towards Egypt’s snack food market, despite macroeconomic hurdles the company is facing, the company said at the time.
Ordinary shares of Egypt’s food snack maker Edita Food Industries S.A.E. (EFID.CA on the Egyptian Exchange) started trading in early April. In parallel, trading of global depositary receipts (GDRs), each representing five ordinary shares, also began on the London Stock Exchange (LSX).
The start of trading comes after the conclusion of a book-building process that saw selling shareholders offer 92,483,770 ordinary shares to institutions and a further 16,320,665 shares to retail shareholders in Egypt, according to investment bank EFG Hermes.
The market capitalisation of the company is EGP 6.7bn ($891m) with a free float of 30% between the LSX and the EGX.
The offer price has been set at EGP 18.50 per ordinary share and $12.28 per GDR, thus the market capitalisation of the company is EGP 6.7bn (approximately $891m), according to Edita’s statement.
Further, coinciding with the Investors’ Summit, a 60/40 joint venture between Actis and Mainstream Renewable Power, Lekela Power, announced on Monday the signing of two memoranda of understanding (MoUs) with the New and Renewable Energy Authority (NREA) for one 50 MW solar power plant in Aswan and one 50 MW wind power plant in the West Gulf of Suez, under the feed-in tariff scheme.