Pioneers Holding Company (PHC) has submitted non-cash mandatory tender offers to increase its equity stake by up to 90% in five key listed subsidiaries, whilst preserving their public status.
With the acquisitions occurring via a share swap, it will be the first time this form of acquisition transaction takes place on local and regional markets.
The five non-cash mandatory tender offers will be executed through a share swap, so that PHC acquires a 9.42% stake in Cairo for Housing & Development (ELKA), a 50.25% stake in United Co for Housing & Development (UNIT), and a 19.35% stake in Electro Cable Egypt (ELEC). PHC will also acquire a 51.14% stake of National Upper Egypt Contracting & Building Works (SCCD), and a 41.56% stake of Giza General – Contracting and Real Estate Investment (GGCC).
“Our new investor-targeted strategy has driven us to seek majority ownership over our high-value subsidiaries, we submitted non-cash Mandatory Tender Offers to increase our stake by up to 90% in five of our listed subsidiaries, while maintaining their public status,” said Waleed Zaki, Founder and Chairperson of PHC.
“This transaction comes as a part of our broader investment strategy announced earlier, allowing for enhanced operational performance across the subsidiaries,” Zaki added.
By carrying out the acquisition, PHC will be investing approximately EGP 3bn. It is anticipated that over EGP 6bn in new investments and expansions will be made in the coming years.
PHC is an investment conglomerate that manages a diversified investment portfolio across three core sectors including real estate and contracting, industrial and financial services.