Egypt state-owned Delta Insurance receives 2 acquisition offers

AXA Egypt, a French insurance giant, targets acquiring at least 75 percent of Delta Insurance’s shares.

Meanwhile, Wafa Life Insurance Egypt seeks to possess a minimum of 51 percent.

AXA stated that if it acquires Delta Insurance, it plans to integrate the company into its existing operations in Egypt to enhance its business and expand its portfolio in the Egyptian market.

Both offers will proceed through a mandatory buyout by relevant laws and regulations.

The prospective buyers have stated that the price is subject to upward or downward adjustment based on further evaluations.

They also requested an integrated due diligence investigation, which involves assessing a company's financial, legal, operational, and strategic factors, to establish a comprehensive understanding of the target company.

Delta Insurance's board of directors has appointed a legal advisor to oversee the legal procedures related to the offers.

The board will also review the proposals and reconvene shortly after the review to make a final decision.

Founded in 1981, Delta Insurance is one of Egypt's longest-established direct insurance providers, offering innovative and customized solutions to help clients manage, control, and mitigate various risks.

The company’s investment net totals approximately EGP 1.16 billion with shareholders' equity standing at EGP 617 million.

Delta Insurance is not among the 32 state-run companies Egypt plans to list on the EGX.

Last week, Prime Minister Mostafa Madbouly announced that Egypt will unveil its plan to list three or four companies affiliated with the Egyptian Armed Forces on the EGX.