(Photo courtesy of Pioneers Holding website)
Pioneers Holding investment firm approved a capital increase of EGP 3bn ($393m), planning to issue 170m shares at EGP 17.63 per share, the company disclosed on Tuesday in a statement to the Egyptian Stock Exchange.
On Monday, Pioneers has won the bid to acquire dairy producer Arab Dairy Product Company (ADPC) at EGP 71.11 per share, the Egyptian Financial Supervisory Authority (EFSA) revealed, beating rival Lactalis’s Al-Nour Company for Dairy Industries that offered EGP 71 per share.
The total value of Pioneers Company’s Arab Dairy bid amounted to $33m, with Pioneers CEO Walid Zaky saying that the acquisition was among his company’s plans to expand activities in the food sector.
Arab Dairy bids started in December 2014 when Swedish-Danish Arla Food, the world’s seventh largest dairy firm, announced it will not complete a bid for all shares of Arab Dairy after a thorough investigation into the company. In the same month, EFSA approved Al-Nour Company’s bid to purchase all shares of the stock-listed of Arab Dairy.
Arab Dairy started production in 1990 in Egypt, and currently exports to countries across the Middle East. It registered a loss of EGP 24m in the first nine months of 2014, according to its statements.
Pioneers firm, which specialises in brokerage services, offers market research and investment banking for retail and institutional clients. It operates in Egypt, the United Arab Emirates (UAE) and Bahrain.
In 2013, the company registered a 37% increase in net profits, marking EGP 358m ($51m) in 2013 compared with EGP 260.5m in the previous year.
