Electronics Production |
Electrolux to buy 52% stake in Olympic Group
Electrolux signed a preliminary agreement with Paradise Capital to acquire 52% of Olympic Group for Financial Investments S.A.E. Olympic Group is a manufacturer of household appliances in the fast-growing Middle East and North Africa region.
Olympic Group has 7'300 employees and manufactures washing machines, refrigerators, cookers and water heaters. In 2009, the company had sales of EGP 2.1 billion (about EUR 260 million) and an estimated volume market share of approximately 30% in Egypt.
The agreement signed is a Memorandum of Understanding with Paradise Capital for Electrolux to acquire Paradise Capital’s 52% controlling interest in Olympic Group and pay a price of approximately EGP 45.30 per share. The acquisition and pricing are subject to satisfactory completion of due diligence and agreement with Paradise Capital on customary transaction documentation.
In connection with an acquisition of Paradise Capital’s 52% controlling interest, Electrolux intends to launch a Mandatory Tender Offer for up to 100% of the shares in Olympic Group, in line with Egyptian capital market regulations, and for the same purchase price as agreed with Paradise Capital.
Upon completion of a transaction, Paradise Capital will acquire Olympic Group’s ownership interest in Namaa and B-Tech, both listed on the Egyptian Stock Exchange. The preliminary price is EGP 13.88 per share for Namaa and EGP 3.44 per share for B-Tech. Excluding these two non-core assets, the enterprise value for 100% of Olympic Group will be an estimated EGP 2.7 billion.
Upon completion of a transaction Olympic Group will enter into a management agreement with Electrolux and Paradise Capital. Against a management fee Electrolux and Paradise Capital will ensure continued technical and management support to Olympic Group, at terms to be agreed upon in detail at a later stage.
