U.S. Kellogg Co. announced it successfully acquire a major stake in Egypt’s snacks maker Bisco Misr, which amounts to 85.93% of total shares, or 9.88 million shares at EGP 888 million ($124.2 million).

The Egyptian Exchange (EGX) announced it executed today, Thursday, January 15, 2015, a purchase offer on shares of Bisco Misr at a total value of EGP 888 million.

The transaction was carried out on nearly 9882320 shares at EGP 89.86 each.

EGX announced on Sunday that a total of 9,882,320 shares or 86% in Bisco Misr were offered for sale in response to Kellogg’s bid.

The spokesperson said Kellogg is very optimistic after winning the deal to acquire Bisco Misr, given the latter’s strong growth potential.

A price war had intensified between Kellogg and UAE’s Abraaj Group to win the deal to acquire Bisco Misr, as they raised bids more than once thus bringing the deal value to above EGP 1 billion, with an increase by 21.6% from the initial bid price.

Kellogg said it increased its bid price for the third time to EG89.86 per share, outpacing Abraaj’s offer at EGP88.09 per share.

Abraaj Group announced it has decided that it will not continue to participate in the competitive bidding process for the acquisition of up to 100% of the share capital of Bisco Misr.

Photo Credit: Arabianeye-Reuters