Multinational co-operative Arla Foods has made an acquisition offer for Egypt's Arabian Food Industries Company (Domty).
Arla Foods has submitted a non-binding offer for the majority of the shares in Domty with a price per share of 31.48 EGP, corresponding to a value of 8,897 million EGP (€168.22 million) for 100% of the shares.
However, the El Damaty family is likely to continue with a shareholding in the company with Mohamed El Damaty as its chief executive officer.
Egypt-based Domty is a listed company with approximately 4,000 employees and two production sites in the country.
Arla added that it seeks to delist the company from the Egyptian stock exchange.
The non-binding offer is subject to satisfactory due diligence, definitive documentation, and corporate and regulatory approval, the company noted.
Domty: A Leading Player
Kim Villadsen, SVP for MENA in Arla Foods, stated, ”The dairy market in Egypt is substantial, Domty is a leading player in that market and the company is well-aligned with our strategy in Egypt.
”We are now looking at the details before deciding whether to proceed with purchasing the business.”
Arla Foods enjoys a long-standing and strong presence in the Middle East and North Africa, which is also its largest commercial area outside of Europe.
“Expanding into Egypt is a natural step in our journey to better serve all our MENA consumers, reinforcing our commitment to regional production and ensuring that we continue to deliver high-quality dairy products tailored to regional preferences,” Villadsen added.
In August, the Danish dairy firm said that it expects full-year revenue to come in at between €13.4 billion and €13.9 billion, despite seeing first-half sales decline, year-on-year.
