(MENAFN- Daily News Egypt) Egypt's main producer of biscuits and cakes, Bisco Misr, announced Monday that shareholders owning 59.9% of the company have agreed to sell their shares to the US food giant Kellogg's, according to a statement issued by Bisco Misr.
The purchase offer made by Kellogg's is considered the highest bid, at a value of EGP 89.86 per share.
Another offer was also presented to acquire shares in the company from UAE's Abraaj Group, according to the Egyptian Financial Supervisory Authority (EFSA). The offer was to acquire 100% of the company's shares and a minimum of 51% at a price of EGP 88.09 per share.
The company declared that it received notifications from the concerned shareholders Monday night that include their full acceptance of selling their shares to the highest bidder, Kellogg's, through a mandatory tender that was issued on the Egyptian Stock Exchange (EGX).
Banque Misr, whose shares in Bisco Misr equal approximately 7%, refuses to give out any information regarding their decision to sell, according to Suzan Hamdi, the bank's General Manager.
Hamdi told Daily News Egypt that the bank's final decision will be revealed by 11 January. She did not however disclose whether the bank will actually agree or refuse to sell to Kellogg's.
Daily News Egypt tried to contact officials from the Ministry of Religious Endowments and Bisco Misr; however they were not available for comment.
The Ministry has acquired shares in Bisco Misr, and their decision regarding selling has yet to be revealed.
On 25 December, 2014, the EFSA announced that the authority will prolong the period of validity of the purchase offers that were proposed by the two companies. The period started from 26 until 31 January. However, the offers remained unchanged.
Kellogg's aims to expand Bisco Misr's products and launch them in the international food market, and distribution will occur through a large network across the Middle East and North Africa, the company's Vice President of Central and Eastern Europe, the Middle East, and North Africa Amr Farghal previously stated.
Kellogg's products are available in 180 countries, and the company employs approximately 30,000 employees distributed around various markets.
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