Business News of 2013-07-22

SEC approves Abraaj’s waiver

Information reaching Citi Business News indicates the Securities and Exchange Commission has granted a waiver applied by the Abraaj Group in its acquisition of a stake in the ice-cream maker, Fan Milk Ltd.

Under the Code on Takeovers and Mergers of the SEC, it is required to make a mandatory takeover offer to existing shareholders of the target company if the acquirer wants to take over more than 30% of the stake of the target company.

Abraaj Group, which intends to takeover about 57% stake in Fanmilk Ltd (100% of Stake of Fanmilk International), applied for a waiver not to make the mandatory offer to the shareholders- reason which currently are undisclosed.

CEO of the SEC, Adu Anane-Antwi told Citi Business News that the waiver was granted because the reasons given were rationale.

“They approached the commission and sought to get the approval not to make that make the strategic offer. They want to hold only what was held by Fanmilk international so that the rest of the shareholders will continue to keep their shares. So the commission has said it has no problem with it.”

Source: citifmonline
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