Egypt’s giant public broadcaster, the Egyptian Radio & Television Union (ERTU), is reportedly selling its 40.06 per cent stake in Nilesat.
Egypt’s National Investment Bank (NIB) has been given permission by the country’s Financial Supervisory Authority to acquire ERTU but without obliging the bank to issue a mandatory tender offer for the holdings of Nilesat’s other shareholders.
Egypt’s usual regulations would require any shareholder owning more than 33 per cent to mount a tender offer. This rule will not be applied even though the NIB already holds a 10 per cent stake in Nilesat. Acquiring the ERTU shareholding of 14.954 million shares will take NIB’s overall holding to just over 50 per cent.
Other shareholders include Egyptian Investment Projects (8.8 per cent), the National Bank of Egypt (7.5 per cent) and Banque Misr with 7.5 per cent.
Nilesat’s share price rose 2.48 per cent to $8.67 on July 26th, although this is well down on the typical $12 price this time last year and a $15 value back in 2015.