Cairo: Orascom Telecom Media and Technology and investment bank Act Financial are seeking to acquire 100 per cent of Egypt-based financial services company Beltone Financial, Orascom Telecom said in a statement on Thursday.
The value of the transaction is estimated at 650 million Egyptian pounds ($83 million), with Orascom Telecom’s share put at 87 per cent and Act Financial’s at 13 per cent, the statement said.
Orascom is looking to broaden its focus from solely telecom and technology to the financial services sector, the energy sector and the transport and logistics sector.
Shares in Beltone Financial were up roughly 20 per cent and Orascom Telecom was up 10 per cent as of 0850 GMT.
Orascom and Act Financial have two weeks to submit an official offer and due diligence will begin this Sunday, Beltone Financial said in a statement. The transaction is expected to be completed during the fourth quarter of 2015, Orascom Telecom said.
“Act and Orascom Telecom will submit the offer over the next two weeks. We are going to self-finance the deal,” said Act managing director Bassem Azab.
Orascom Telecom’s CEO Naguib Sawiris had previously tried to acquire EFG Hermes, the largest investment bank in the Middle East, through his New Egypt Investment Fund but the bid was unsuccessful.
Orascom Telecom is a holding company with investments in media and technology, cable businesses, and more recently energy, transport and logistics.
Act, founded earlier this year, is an investment bank specialising in securities brokerage, asset management and investment.
