UAE’s Abraaj, Kellogg engage in bidding war for Egyptian firm
02 Dec 2014
(MENAFN) Kellogg Co announced it has raised its bid for Egyptian cake and biscuit maker Bisco Misr, resulting in intensifying the bidding war with the UAE’s Abraaj Investment Management that has pushed up the offer price by more than 12 percent, Arabian Business reported.
The world’s biggest breakfast cereal maker said that it upped its bid to USD11.50 per share, which is higher than Abraaj’s previous offer of USD11.27 for Bisco Masr, which has three baking facilities in Cairo and Alexandria.
This bidding war between the competing Kellogg and Abraaj is another sign that investors’ confidence is resuming towards the Egyptian market, which has been struggling for the last 3 years due to political unrest.
Abraaj, which has about USD7.5 billion of assets under management, typically invests in high-growth sectors in emerging markets and the food sector is a very fast growing market in Egypt, which is highest populated country in the Arab world with a population of 86 million.