Abraaj pulls out of Bisco Misr bidding

Abraaj Group, an equity firm based in the United Arab Emirates, announced Wednesday that it is pulling out of the bidding process for Egyptian confectioner Bisco Misr.

Abraaj had been involved in a bidding war with US-based cereal maker Kellogg Co., as both sought to acquire a controlling stake in Bisco Misr.

The ownership of Bisco Misr, which produces biscuits, cakes, cornflakes and other baked goods at its three Egyptian factories, has been contested for months.

Abraaj made its initial bid in late November, offering LE73.91 per share, amounting to a total purchase price of around LE850 million. Bidding heated up when Kellogg’s made a counter offer of LE79 per share.

By December 25, after several rounds of bidding by the two companies, offers grew by more than 20 percent, pushing the company’s value above LE1 billion. That day, Egyptian regulators approved a bid from Abraaj at LE88.09 per share, quickly followed by a counter-offer of LE89.86 per share by the Kellogg Co.

The Wednesday statement from Abraaj did not explain why it withdrew from the bidding process.

It noted the “fair, orderly and transparent bid process for BiscoMisr clearly validates the growing investor interest in Egypt,” adding that “we expect to see significant investment activity in the country over the coming months given Egypt’s attractive underlying growth potential and its recent positive economic traction.”