Private equity investing firm Abraaj Group has decided to withdraw from the bidding process for the acquisition of Egypt's BiscoMisr.
The company had offered $12.14 per share to purchase up to 100% of the share capital of Egyptian cake and biscuit maker.
Abraaj was in a competitive bidding process with US-based food manufacturing company Kellogg, which offered $12.39 per share.
In addition to buying BiscoMisr for $139.7m, Abraaj had also offered a provision to allocate shares with a value of around $ 13.7m to impliment a employee incentivization and retention program, the company said.
Abraaj said in a statement that it has decided that 'it will not continue to participate in the competitive bidding process for the acquisition of up to 100% of the share capital of BiscoMisr'.
"Abraaj believes that the fair, orderly and transparent bid process for BiscoMisr clearly validates the growing investor interest in Egypt.
"Abraaj is positive on the long-term prospects of the consumer sector specifically, and the investment opportunities in general, in Egypt," it added.
With Abraaj' deciding to pull out of the bidding process, Kellogg will be the sole bidder for the Egyptian company.
Image: Egyptian cake and biscuit maker Bisco Misr reported net profit of EGP 37.4m for the nine months through September. Photo: courtesy of mrsiraphol/ FreeDigitalPhotos.net.
