Delta Insurance, which is listed on the Egyptian Exchange, has received acquisition offers from AXA Egypt and Wafa Life Insurance Egypt.
AXA Egypt plans to purchase at least 75% of Delta Insurance’s shares while Wafa Life Insurance Egypt seeks to buy a minimum of 51%, according to local media reports. Both prospective buyers have registered their interest through non-binding offers to buy up to 100% of Delta Insurance.
An initial valuation estimates the purchase price at EGP5bn ($99m) for the total issued share capital of Delta Insurance at EGP50 per share. The price is subject to upward or downward adjustment based on further evaluation.
AXA states that if it acquires Delta Insurance, it will integrate the company into its existing operations in Egypt to enhance its business and expand its portfolio in the Egyptian market.
Both offers will proceed through a mandatory buyout by relevant laws and regulations.
Delta Insurance's board of directors has appointed a legal advisor to oversee the legal procedures related to the offers. The board will also review the proposals and reconvene shortly after the review to make a final decision.
Egyptian Kuwaiti Holding (EKH) owns 63.39% of Delta Insurance, according to a bourse filing.