Arla Foods has made a non-binding offer for the majority of the shares in the Arabian Food Industries Company (Domty), a listed company with approx. 4000 employees and two production sites in Egypt.
On 15 October 2024 Arla Foods submitted a non-binding offer for the majority of the shares in the Arabian Food Industries Company from Egypt, with a price per share of 31.48 EGP, corresponding to a value of 8,897 million EGP (implying 183mUSD based on today’s exchange rate) for 100% of the shares. It is however expected that the current owners, the El Damaty family, will continue with a shareholding alongside Arla and Mohamed El Damaty will continue as the CEO. It is Arla’s intention to delist the company from the Egyptian stock exchange.
The non-binding offer is subject to satisfactory due diligence, definitive documentation, corporate and regulatory approval.
Said Kim Villadsen, SVP for MENA in Arla Foods: “The dairy market in Egypt is substantial, Domty is a leading player in that market and the company is well-aligned with our strategy in Egypt. We are now looking at the details before deciding whether to proceed with purchasing the business.”
Arla Foods has a long-standing and strong presence in the Middle East and North Africa, which is the company’s largest commercial area outside of Europe.
Concluded Villadsen: “Expanding into Egypt is a natural step in our journey to better serve all our MENA consumers, reinforcing our commitment to regional production and ensuring that we continue to deliver high-quality dairy products tailored to regional preferences.”
As Domty is a listed company, the non-binding offer is public information. Arla Foods has no further comments on the offer.
