(MENAFN- Daily News Egypt) Edita Food Industries' Board of Directors has approved the commencement of procedures to obtain a seven-year EGP 175m loan, including the grace period. The loan will be used to finance the purchase of new production lines.
Edita Vice-President Dina El-Sonbaty said the company cannot disclose the names or the nationalities of those with whom it will negotiate, yet.
Last week, the company announced that it will be seeking an EGP 90m medium term loan to finance the $12m contract signed with US company Hostess Brands LLC. The loan will be provided by the National Bank of Kuwait (NBK) over a seven-year period.
The first contract will extend the intellectual property rights for three Hostess products, to include 12 Arab countries. The second was for the purchase of property rights to technical knowledge for many of the North American company's products.
On 1 April, the initial public offering (IPO) of Egypt's snack food maker was 4.5 times oversubscribed. 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).
Later the same month, Actis, the global emerging market private equity investor, announced that it has partially exited from Edita after investing $102m purchasing shares in June 2013.
During the first quarter (Q1) of 2015, the company recorded some EGP 529m net revenues and EGP 81m net profits.
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