By Mohamed Ahmed
The American investment company, Graviton, is in serious negotiations with a real estate company and an agricultural production company in the Egyptian market.
Graviton aims at acquiring stakes ranging from 20-30% by raising the capital of the two companies with an expected value of approximately EGP 300m.
Graviton’s regional partner and investment manager at Cartel Capital, Ayman Abou Hend, said Graviton targets, through its direct investment fund, the acquisition of 25-30% of the agricultural company’s shares. The target company produces grain and exports its production to the US market.
The company is currently in need for more investment to increase its production capacity through the purchase of new production lines to meet the foreign demand, as they now utilise only 30 % of the capacity.
According to Abou Hend, the agricultural company’s revenues are currently around $5m, whereby its operations started only two years ago, after separating from the parent company five years ago. The company’s paid-up capital is of EGP 200m, and is expected to amount to EGP 300m following the completion of the acquisition through capital increase.
Graviton is moving in parallel negotiations to acquire 20% of a real estate company by raising its capital by EGP 150m-EGP 200m. The company specialises in the construction of tourist and urban compounds. It is also in need of financing to complete its projects, according to Abou Hend.
He added that, if the acquisition is completed, the real estate company will be expected to put its shares for sale on the Egyptian Stock Exchange in 2016.
Graviton’s capital fund amounts to $300m. It is liable to excess to fund targeted acquisitions deals in the Egyptian market. Food and real estate investment and retail companies have high growth opportunities. The minimum value of acquisitions fulfilled by the fund is worth $15m.