Raya Holding for Financial Investments, listed on the Egyptian stock exchange, announced on Sunday that it has approved in principle an offer from the UK-headquartered Helios Investment Partners (Helios) to acquire a 49 percent stake in its wholly-owned subsidiary, Raya Foods.

Helios is the largest Africa-focused private investment firm with over $3.5 billion in assets under management.

The deal, valued at approximately $40 million, includes a secondary share purchase involving the sale of existing shares from current shareholders to the new investor, a $14 million capital increase through issuance of new shares, and a $9 million convertible mezzanine loan that could be converted into equity at a later stage.

Raya Holding is being advised by US-headquartered Baker McKenzie as legal advisor and Morocco-based Attijariwafa bank as financial advisor. The transaction is expected to be finalised in the first quarter of 2025.

The deal with Helios will support Raya Food’s broader strategy to expand into new markets, particularly Saudi Arabia. The company plans to use the proceeds to build a new 25,000-square metre factory in Sadat City, focused on processing and exporting lyophilised (freeze-dried) foods.

Raya Foods currently exports its products to over 50 countries, with a strong focus on European and American markets. It is the second-largest exporter of frozen fruits and vegetables in Egypt with an annual production capacity of 50,000 tonnes, and aims to become the largest exporter in the country and the first to manufacture and export freeze-dried vegetables and fruits.

While Raya Foods' valuation is currently estimated at $65 million, the board is expected to mandate local firm FACT with conducting a thorough valuation assessment. The company's paid-in capital is EGP 340 million, with its equity valued at EGP 287 million, according to a previous EGX statement by Raya Holding.

(Reporting by Eman Hamed & Marwa Abo Almajd; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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