The Clap
Chimera snatched only a 56% of Beltone for around EGP 385 million (EGP 1.485 per share), a price 19% lower than the current market price.
Background
Chimera submitted an offer to acquire a 51%-90% stake of Beltone for EGP 1.485 per share. Orascom responded by selling their 56% stake to Chimera.
Why did small shareholders hold their stocks?
According to Ehab Rashad, vice chairman of Mubasher Capital, the unresponsiveness of small shareholders to the offer as well as the increase in the market price compared to the offer, goes back to the presence of operating licenses and capabilities that are not being used in the most efficient way to achieve better return.
These shareholders hold high hopes that Chimera will improve the performance of Beltone, making them opt to hold their shares rather than sell.
Chimera to acquire 56% of Beltone only! 👀
