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Electrolux extends due diligence on Olympic deal

Electrolux said in October it had agreed to buy Olympic but the acquisition process was suspended during the political unrest that led to the overthrow of President Hosni Mubarak.

May 31, 2011 2:30 by



Olympic Group said on Tuesday that Sweden’s Electrolux , which has a preliminary agreement to buy the Egyptian appliance maker, will extend due diligence checks on the $370 million deal by 15 days.

Electrolux said in October it had agreed to buy Olympic but the acquisition process was suspended during the political unrest that led to the overthrow of President Hosni Mubarak.

Olympic said in a statement to the Egyptian stock exchange that it agreed with Electrolux to “extend the period for completion of the deal by a maximum of 15 days”.

“That is to enable Electrolux to complete its due diligence and allow the parties a chance to complete negotiations and sign the contract to sell the shares and the contracts related to the deal,” the statement said.

Electrolux said in October it would pay Olympic’s owner Paradise Group 45.30 pounds per share for a 52 percent stake and then launch an offer for the rest of the company on completion of the deal at the same price.

Paradise would launch a tender offer to re-acquire two Olympic non-core assets, Namaa and B-Tech .

The net cost of the deal, excluding the sales of non-core subsidiaries, is 2.2 billion Egyptian pounds ($370 million), an Electrolux spokesman said in October.

Olympic’s shares closed at 34.80 pounds on Monday, down 15 percent this year.

In an interview with Reuters in March, Electrolux’s chairman Keith McLoughlin would not say whether a new price was being negotiated. ($1=5.949 Egyptian pounds) (Reporting by Ehab Farouk; Writing by Shaimaa Fayed; Editing by Greg Mahlich)



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