Statement from Gulf Capital
Gulf Capital (“GC”) has today issued the following statement in regards to an investment it is intending to complete in Egypt.
Gulf Capital confirms that it has signed, through MTM Packaging 2 (“MTM”), a company incorporated under Cayman laws and owned by GC Equity Partners II, a private equity fund managed by GC, an agreement with MAC Investments, the shareholders owning a controlling stake (“MAC”) in Middle East Glass S.A.E. (the “Company” or “MEG”), a leading container glass manufacturer in Egypt, outlining the intent: (i) for MTM to issue a mandatory tender offer (“MTO”) on the Egyptian Stock Exchange (“EGX”) to acquire 100% of the shares of the Company at a price per share not exceeding USD 27.81, (ii) for MAC to respond to the MTO to the extent that allows MTM to acquire 19.35 percent of the capital of MEG, and (iii) post completion of the MTO, for the Company to initiate a capital raise process for EGP 200 million to which MTM shall subscribe in full. The capital injection will be used to fund expansion plans in Egypt. The completion of the proposed transaction shall be subject to obtaining the necessary regulatory approvals including that of the Egyptian Financial Supervisory Authority (“EFSA”) pursuant to the Egyptian Capital Market Law (“CML”).
A disclosure of the above has been made to the Egyptian Stock Exchange (“EGX”) by the Company on 6th of April 2014 (the “Disclosure”). In accordance with the CML, GC is required, by no later than 60 EGX business days from the Disclosure, to either submit the tender offer file to the EFSA for approval or to announce that it does not intend to make an offer. No further comment will be issued by GC at this point.