Electrolux to buy Egyptian appliance maker Olympic

Sweden-based Electrolux said it would offer 40.60 Egyptian pounds, or USD 6.82, per share. That values the company at 2.4 billion Egyptian pounds (USD 409 million) based on 60 million shares outstanding.

The deal had been tentatively agreed upon last October and valued at 2.7 billion Egyptian pounds (USD 454 million).

Electrolux said it expects the deal to be completed by late July or early August.

Electrolux said it would sell Olympic Group's ownership in associated companies Namaa and B-Tech to Paradise Capital, Olympic's parent company, after the deal is complete. Paradise holds a 52% controlling stake in Olympic.

Electrolux will pay a yearly management fee of 2.5% of Olympic's sales to Paradise over the course of a seven-year deal.

Olympic Group has 7,300 employees and makes appliances such as washing machines, refrigerators, cookers and water heaters.

Last week, Olympic extended the timetable for Electrolux to finalise its offer by another 30 days.

(USD 1 = 5.95 Egyptian pounds)