Raya Holding for Financial Investments has called off the planned sale of its subsidiary Raya Foods to Helios Investment Partners, after conditions attached to the deal went unmet, and says it will instead focus on expanding the frozen food exporter’s operations.
The company’s board decided to scrap the transaction at a meeting held Tuesday, ending a process that dated back to a board decision in January regarding Helios’s amended offer to buy full ownership of Raya Foods.
“The decision was made following a complete review of the conditions required for the closure of the transaction, which we consider to be consistent with our obligation to the shareholders and our policy of creating value for all our business groups,” the company said.
While giving reasons for the decision, the company stated that Raya Foods is a key unit in the company since it is among the largest Egyptian exporters of frozen fruits and vegetables with a wide market reach as the products are sold in more than 50 countries and are generating about 95% of the unit’s revenues in hard currency.
Rather than pursue a sale, Raya Holding said it will now direct resources toward strengthening Raya Foods’ export capacity and pursuing growth in international markets, with the goal of cementing its position among Egypt’s top export-driven food producers.
The holding company also used the announcement to lay out its broader investment philosophy, saying portfolio decisions are guided by ongoing evaluation of opportunities against clearly defined strategic and commercial benchmarks, with preference given to ventures that strengthen the competitiveness of its subsidiaries.
It added that succeeding in Egypt’s market over the long run demands a clear strategic vision, sustained commitment, close market knowledge, and disciplined execution.
Going forward, the company said it intends to keep pursuing a strategy centered on maximizing returns across its diversified holdings, backing high-growth subsidiaries, and seeking out opportunities that reinforce its standing in key sectors at home and across the region. Egypt Journal
