EGYPT: Omar Effendi Department Stores Up For Sale Again
The Trade Holding Company has set a 15 April deadline for bids to purchase up to 90 per cent of the shares of Omar Effendi, which has 83 stores countrywide. The sale is to be handled by Fleming CIIC.
Omar Effendi was previously offered for sale in 1999 as part of a package with three other shop chains and a warehousing company. Bids were submitted in October 1999, but the deal was aborted eight months later when the bidders all declined invitations to increase their prices. Figures issued as part of the sale promotion show a steady fall in the company's turnover and net profits over the past three years.
The decision to relaunch the process by offering Omar Effendi alone has been welcomed by investment advisers. "
"This is a much better approach," says
Rana Durra of HC Securities. "It means the investors will be able to concentrate their efforts."
In the original tender, Omar Effendi attracted the highest prices. The Sanaa Misr group, made up of some of Egypt's leading industrial firms, quoted E£186.2m ($48.3m), against E£152m ($39.5m) from the Egypt Kuwait Holding Company. It is not yet clear whether Sanaa Misr is planning to table a revised offer for Omar Effendi according to the new terms. The Egypt Kuwait Holding Company has made a fresh move into the retail sector through forming a joint venture with South African supermarket chain Shoprite, which opened its first store in Egypt in late 2000.
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