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Abraaj pulls out of bidding for Egypt’s Bisco Misr

The company was in a bidding war with Kellogg for the purchase of as much as 100 per cent of the Egyptian confectionary

Private equity firm Abraaj Group will pull out of the bidding process for the acquisition of Egypt’s Bisco Misr, Abraaj said on Wednesday.

The company had been involved in a bidding war with Kellogg Co, the world’s largest breakfast cereal maker, for the purchase of as much as 100 per cent of the Egyptian confectionary.

Abraaj is positive on the long-term prospects of the consumer sector specifically, and the investment opportunities in general, in Egypt.

However the private equity firm did not give a reason for its withdrawal from the bidding process, but said in a statement that the orderly and transparent process had underlined growing investor interest in Egypt.

Abraaj’s latest offer, through one of its funds, for the acquisition of Bisco Misr, was made on December 24, 2014, when it further increased its offered purchase price per share to EGP88.09, amounting to a total purchase price of EGP1,013 million for the company, but Kellogg subsequently increased its bid to EGP89.86, Abraaj said.

Abraaj’s latest offer also included a provision to allocate shares with a value of around EGP100m towards implementing a long term employee incentivization and retention programme to benefit all Bisco Misr employees.