The main Egyptian Stock Exchange index, EGX 30, has increased by 1.86% to register 7491.7 points by the closure of the market’s transaction on Thursday.
Meanwhile, EGX 50 increased by 2.18% to reach 1241.4 points, while EGX 70 increased by 1.76% to register 398.5 points. EGX 100 also rose by 1.22% to register 852.4 points.
The increases took place after Orascom Telecom Media and Technology (OTMT) and Act Financial (Act) announced their intention to acquire 100% of Beltone Financial on Thursday, subject to a satisfying due diligence.
OTMT’s share of the offer is 87% and Act’s share of the offer is 13%, the transaction value is estimated at up to EGP 650m. The transaction is expected to be executed within Q4 of 2015, according to a Thursday statement.
“We are very happy to explore such opportunity as it is an important step in the execution of OTMT’s new strategy to shift from a solely telecom and technology based firm to an investment holding company,” commented Naguib Sawiris, Chairman and CEO of OTMT.
He also added: “The company will have focus especially on the financial services sector, the energy sector and the transport and logistics sector among other business lines that would create value for our shareholders.”
“We look forward to a successful transaction with Act Financial, our new strategic partner in the financial sector,” Sawiris added.
Chairman of Act Financial, Sameh Torgoman, also commented: “We started our journey with great confidence and ambition in the Egypt transformation story, and with this investment we are extending our commitment to this mission.”
Meanwhile, Beltone Financial Holding’s shares jumped about 21% in the Egyptian Stock Exchange on Thursday following the announcement.