Cairo – Mubasher: The board of directors of Raya Holding for Financial Investments has initially approved a proposal by Raya Distribution to acquire majority stakes in two companies.

The proposal includes the acquisition of 100% or 936,800 shares of Itsalat International Company and 100% of United Retail Company, Raya Holding said in a bourse disclosure on Thursday.

Raya Electronics Co will be used to meet the legal requirements in accordance with the Corporate Law.

The move is part of Raya Distribution’s plan to expand inside and outside Egypt, widen its customer base, and increase the number of branches and selling points.

The board authorised the chairmen of Raya Distribution and Raya Electronics to begin procedures to complete the acquisition deal.

In addition, the board decided to increase the issued and paid-up capital of Raya Distribution to EGP 320.87 million from EGP 220.87 million.

The board also initially approved an offer to invest about EGP 100 million in setting up a direct investment fund in collaboration with one of the foreign direct investment (FDI) management funds.

During the first nine months of 2020, Raya Holding for Financial Investments incurred net losses of EGP 53.69 million, down from EGP 58.16 million in the year-ago period.