(MENAFN) Egypt's Bico Misr said that shareholders controlling 86 percent of its shares agreed to sell their shares to Kellogg, the world's biggest cereal maker, for a total of USD125 million, thus ending the bidding war between it and Abraaj, the UAE private equity firm, which withdrew from the bidding, Gulf Business reported.
Following Abraaj's withdrawal at the end of December 2014, Kellogg was able to secure the support of shareholders controlling nearly 60 percent of Bisco Misr's shares, but the group has said that it was willing to buy 100 percent.
Kellogg said that it views the food sector as a fast-growing sector in the most populous Arab nation of 90 million people, adding that Bisco Misr, with its three baking facilities in Cairo and Alexandria, will help expand its business in the region.
"The Bisco Misr deal will not be the last in Egypt's food sector. We see more acquisitions in the coming period to take advantage of strong domestic demand in Egypt," Pioneers Investment Management said.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.