B Investments (BINV) is selling its entire stake (44.7%) in Giza Systems to Saudi STC’s internet arm.
The deets B Investments accepted the non binding offer made by STC’s subsidiary (Solutions). The offer values Giza Systems at $145 million.
The final value of the shares will be determined based on Giza System’s net debt and working capital at closing the deal.
Why this matters
The transaction is one of a series the Egyptian market has witnessed recently. The investments represented in the flow of M&A transactions are of importance during the current economic times in Egypt.
Working capital is used as a measure of a company’s liquidity and its short term financial health. A ratio more than 1 indicates a company’s capacity to pay off current liabilities from its current assets. A negative working capital, with a ratio lower than one, signals that the company isn’t able to meet its short term obligations with current assets.