Olympic sees Electrolux deal in 30 days
Cairo, July 3, 2011
Egyptian appliance maker Olympic Group said on Sunday it was extending the timetable for completion of a takeover of the company by Sweden's Electrolux by 30 days.
'On the evening of June 30, 2011, a new amendment was signed to the memorandum of understanding, entailing an extension of the time to complete the deal by 30 days,' Olympic said in a statement to the Egyptian Exchange.
'This is to allow the parties an opportunity to finish negotiations and sign the share sale contract and agreements related to the deal,' it said.
Economic turmoil in Egypt following a popular uprising that unseated President Hosni Mubarak in February had delayed the deal, which was tentatively agreed upon last October and valued at 2.7 billion Egyptian pounds ($452 million).
Olympic said last month it had agreed to give Electrolux another 15 days to complete due diligence on the deal. The firm has extended the date for completion of the deal several times since the uprising.
The chairman of Paradise Capital, the parent company of Olympic, said last week he expected the deal value to be revised lower, given the changes in the country after the political uprising, but did not give further details.
The deal's fate is likely to influence broader investor sentiment towards Egypt.
Foreigners pulled money out of the Egyptian financial market and treasury bills following Mubarak's overthrow, contributing to a 4.2 percent drop in gross domestic product in the first quarter. - Reuters