Swedish appliance giant Electrolux, as of today, owns 98.33% of the shares of Egyptian appliance maker Olympic Group. Electrolux successfully completed the mandatory tender offer that was launched in connection with the agreement to acquire Paradise Capital’s 52% majority stake in Olympic Group Financial Investment Company S.A.E (Olympic Group).
Olympic Group will be consolidated in Electrolux as of September 2011, and Electrolux intends to delist Olympic Group’s shares from the Egyptian Exchange no later than in the first quarter in 2012.
Electrolux intends to offer remaining minority shareholders the opportunity to sell their shares in Olympic Group over the next 12 months.
In October 2010 Electrolux announced its intention to acquire Olympic Group but the transaction was delayed as Egypt underwent political upheaval. Once the formation of a new Egyptian government began, Electrolux again proceeded with the steps required to make the acquisition, which were finalized on Sept. 9, 2011.
Olympic Group has 7,300 employees and produces washing machines, refrigerators, cooking appliances, and water heaters.
Two associated companies - Namaa and B-Tech - are not part of the core business and will be divested.
Excluding Namaa and B-Tech, Olympic Group had sales of about EGP 2.3 billion (approx. US$385 million) in 2010 and a recurring operating profit of about EGP 265 million (approx. US$44 million).
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