UAE’s Agthia seeks to buy 60% stake in Egypt snacks firm Abu Auf

DUBAI, July 14 (Reuters) – United Arab Emirates meals and drinks group Agthia mentioned on Thursday its board authorized a proposed acquisition of 60% of Egyptian snacks firm Abu Auf Holding price 2.92 billion Egyptian kilos ($154.99 million).

Agthia (AGTHIA.AD), majority owned by the Abu Dhabi authorities by state investor ADQ, has since late 2020 made a string of acquisitions within the area, together with beforehand in Egypt, because it seeks to turn into one of many prime meals trade gamers within the Center East.

ADQ’s acquisitions in Egypt embrace shopping for $1.85 billion price of stakes in 5 listed firms in April. In Could, the UAE’s state information company mentioned ADQ will allocate $10 billion in funding for initiatives with Egypt and Jordan, together with agriculture, prescribed drugs, minerals, petrochemicals and textiles. learn extra

Agthia is in search of to amass the bulk stake in Abu Auf, also referred to as Auf Group, by its subsidiary AG Synergy Holding 1 RSC Ltd (Synergy Holdco) from current shareholders Ahmed Auf, Mohamed Auf, Ayman Auf and Tanmeya Power BV, a automobile managed by Tanmiya Capital Ventures (TCV), it mentioned in a inventory trade submitting.

After completion of the deal, which is topic to regulatory situations, the founders will maintain 30% and TCV, an Egyptian personal fairness agency which invested in Abu Auf in 2019, will maintain a ten% stake.

Abu Auf is a producer, distributor and operator of retail shops and kiosks of speciality merchandise and wholesome snacks, together with espresso, nuts, dates, dried fruits, and different kitchen necessities in Egypt, Agthia mentioned.

It has greater than 190 branches in Egypt and sells its merchandise to grocery retailers and luxurious motels.

“Auf Group is a vital strategic goal for Agthia,” Agthia Group CEO Alan Smith mentioned in an announcement.

“Along with instant entry to new income streams and product strains, we’re excited to develop our presence in Egypt and utilise the acquisitions made final yr to additional strengthen our operations and market income base.”

Freshfields Bruckhaus Deringer LLP and Matouk Bassiouny & Hennawy are performing as Agthia’s authorized counsel and CI Capital as monetary adviser to Agthia.

EFG Hermes suggested Auf Group and TCV, it mentioned in an announcement.

($1 = 18.8400 Egyptian kilos)

Reporting by Yousef Saba. Modifying by Jane Merriman

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