Cairo-based Egyptian investment firm Tharwa Capital continued its rise for a second consecutive session on Thursday after Orascom Investment's billionaire Naguib Sawiris announced its intention to acquire about 30 percent of the company's shares.

 

Shares in Tharwa Capital have witnessed significant price declines since the company's IPO on the Egyptian stock exchange in October.

 

By 0827 GMT, shares rose 3.6 percent to 6.39 pounds ($ 0.36).

 

Ibrahim Al Nimer of Naeem Securities Brokerage said that Tharwa Capital shares are trading at the price level expected according to Sawiris's offer at EGP 6.50.

 

Orascom Investment offered to buy 216,032 million shares in Tharwa Capital at the price of the offering of 7.36 pounds per share, or buy 144,021 million shares and even less than 216,032 million shares worth 6.62 pounds per share.

 

Tarwa's IPO was launched in October at EGP7.36.

 

Tamer al-Mahdi, managing director of Orascom Investment, said in a telephone interview with Reuters on Wednesday that it had completed the acquisition of 30 percent of Tharwa Capital in November.

 

"If the deal is actually implemented, there will be no impact on the management of its financial wealth or performance, but Orascom will be the biggest beneficiary, whether for positive reflection on its budget or its liquidity," said Radwa Al Suweifi, head of research at Pharos Investment Bank. Big untapped ".

 

"The share price of Tharwa Capital in the market is very attractive to buy and the company has sufficient liquidity to complete the acquisition," Mahdi told Reuters