Arla Foods Set to Acquire Domty: A Major Milestone in Egypt’s Food Industry
In a significant move within the food industry, Arla Foods, a leading Danish dairy producer, has made a mandatory offer to acquire 100% of the shares in Arab Food Industries Company "Domty", with an initial, non-binding valuation of 8.8 billion EGP.
Details of the Acquisition Offer
As revealed in a statement to the Egyptian Stock Exchange on Wednesday, the preliminary, non-binding purchase price is set at 31.48 EGP per share. Domty’s major shareholders have expressed their preference to go through with the acquisition deal offered by Arla Foods, contingent on final agreements being established.
Key Players and Shareholder Agreement
The Damati family, key shareholders in Domty, have indicated their intention to retain a portion of their shares in the company, even after the acquisition. Additionally, Mohamed El Damati, a prominent figure in the company, will continue in his role as the Managing Director.
This partnership aligns with Domty's strategic goals, with Arla Foods committing to enhance Domty's regional presence and expand its services in Egypt.
Delisting from the Egyptian Stock Exchange
As part of the deal, Arla Foods plans to delist Domty shares from the Egyptian Stock Exchange after completing the acquisition. This will be a voluntary delisting, ensuring that Domty transitions smoothly into being fully under the ownership of Arla Foods.
Conditions for the Acquisition
The completion of this acquisition remains subject to certain conditions:
- Completion of Due Diligence: Arla Foods will conduct a thorough review of Domty’s operations.
- Final Purchase Price Agreement: Both parties need to agree on the final purchase price for the mandatory offer.
- Government Approvals: Necessary approvals from regulatory bodies and government entities must be secured.
- Final Agreements: All parties will need to sign the final agreements before the transaction is finalized.
Supporting Domty’s Growth
Arla Foods has made it clear that its acquisition of Domty aims to support the regional growth of the company and help it expand its services further across Egypt and beyond. This is seen as a key strategic step in strengthening Arla Foods’ footprint in the Middle Eastern market.
Finally
With Arla Foods' acquisition of Domty, the deal marks a major shift in the Egyptian food industry, and the strategic partnership is set to bring regional growth opportunities. As the transaction progresses, all eyes will be on the finalization process and its impact on the food sector.
