UAE Group Bids $558M for Stake in Egyptian Billionaire Family’s Electric Company

Electra Investment Holding, based in the United Arab Emirates, has made a bid to acquire a 24.5% share in Elsewedy Electric, a leading maker of electrical equipment mainly owned by the Egyptian wealthy El-Sewedy family.

Electra submitted an offer to the Financial Regulatory Authority (FRA) to purchase up to 24.5% of Elsewedy Electric for $1.05 per share, valuing the possible acquisition at $558.43 million.

The action led to a spike in Elsewedy Electric’s shares, indicating investor excitement for the proposed deal. The offer requires a minimum acquisition of 15% of Elsewedy’s shares for the transaction to complete.

Elsewedy Electric, founded in 1938 by the El-Sewedy family, is a leading manufacturer of electrical equipment in the Middle East and North Africa, with substantial contributions to many projects.

Egyptian billionaire Ahmed El-Sewedy and his siblings own a 68.1 percent share in the corporation. Elsewedy Electric has performed well financially under their guidance.

In 2023, the company’s consolidated profits reached EGP11.14 billion ($238.73 million), up 93.56 percent from the previous year. Consolidated revenues increased by 65 percent to EGP152.18 billion ($3.26 billion) during the same time.

Elsewedy Electric paid out EGP1.06 billion ($22.72 million) in dividends to stockholders for the fiscal year 2023, indicating strong profitability.

Elsewedy Electric has survived recent economic difficulties, such as currency depreciation and supply chain interruptions, by growing its global base and manufacturing capacity. Increased output from manufacturers in Saudi Arabia and Algeria has helped to alleviate the effects of these difficulties.

El-Zeiny, Elsewedy Electric’s vice president and CFO, emphasized the favorable impact of the Egyptian pound’s depreciation on the company’s exports, notably to Europe. The UK has emerged as a prominent destination for Elsewedy’s cables, benefiting from the group’s increased competitiveness as a result of the currency shift.

The outcome of Electra’s current attempt is unknown, but the move has surely created a surge of optimism. A successful takeover would provide prospects for shareholders to profit from their investment in the foremost electrical equipment maker.

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