Mubasher: The Financial Regulatory Authority (FRA) has rejected the mandatory tender offer (MTO) submitted by Sagasse Investment Company to fully acquire Elsewedy Electric Company.

Sagasse intended to offer EGP 65 per share in cash or via share swap through newly-issued Sagasse stock to take over Elsewedy Electric, according to a bourse disclosure.

The UAE-based company already holds an indirect 18.87% stake in Elsewedy Electric through its subsidiary Electra Investment Holding.

On its part, the FRA attributed its rejection to valuation concerns and the Emirati company's recent establishment and its lack of actual operational activity.

In the first half (H1) of 2025, the consolidated net profits attributable to the owners of Elsewedy Electric increased to EGP 8.69 billion from EGP 8.43 billion in H1-24.