October 31, 2018 / 2:19 PM / 15 days ago

UPDATE 1-Egypt's Orascom Investment expects to acquire 30 pct of Sarwa Capital

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CAIRO, Oct 31 (Reuters) - Egypt-based Orascom Investment Holding said on Wednesday it expected to acquire 30 percent of Sarwa Capital’s shares in November.

Sarwa’s shares rose 10 percent on news of the offer, closing at 6.17 Egyptian pounds ($0.3455).

Orascom requested approval from the regulator on Wednesday to buy a non-controlling stake of 216 million shares of Sarwa at 7.36 pounds each.

If it only acquired between 144 million and 216 million shares, it would pay 6.62 pounds a share.

Orascom Chief Executive Tamer El Mahdi told Reuters that the market price per share of Sarwa was very attractive and that Orascom had the liquidity to make the acquisition.

Sarwa’s shares, which sold at 7.36 pounds each at its initial public offering early this month, fell by about 15 percent on the first day of trading on Oct. 15. ($1 = 17.8600 Egyptian pounds)

Reporting by Ehab Farouk Writing by Yousef Saba Editing by Patrick Werr, Edmund Blair and Kirsten Donovan

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