Morocco's Wafa Assurance has filed a draft announcement of a mandatory tender offer (MTO) for Delta Insurance Company shares, according to a statement issued by the Financial Regulatory Authority (FRA) on the Egyptian Exchange on 11 June.
The FRA announcement stated that the offer includes the purchase of up to 125m shares, representing 100% of Delta Insurance's shares, at a purchase price of EGP40 ($0.81) per share, subject to a response from at least 51% of shareholders. The deal is estimated to be worth EGP5bn.
The statement noted that the deal will take into account that the number of shares required to be purchased includes the additional 25m shares listed in the commercial register, for which an application will be submitted to the Egyptian Stock Exchange.
The MTO includes the offeror's intention to delist the target company's shares from the Egyptian Exchange. The offeror is committed to purchasing all shares that have not responded to the MTO at the same offered price of EGP40 within six months of the offer's implementation date, upon notification of any shareholder's desire to sell their shares.
The offeror is scheduled to merge Delta Life Insurance (a subsidiary of Delta Insurance Company) into Wafa Life Insurance (a subsidiary of the offeror Wafa Assurance), within two months of the purchase, with a maximum of six months remaining.
The statement indicated that the offer is currently being reviewed by the FRA.
Delta Insurance Company was founded in 1980 as a composite insurer. In 2010, the company established its life insurance arm, Delta Life Insurance Company.
Wafa Assurance, Morocco’s largest insurance provider, established its Egypt operations in 2020 as a life and personal lines insurance provider.