For many Egyptians, whether in their early teens or senior years, Bisco Misr is not just another confectionery company. It is the confectionery company whose products were an integral part of childhood. Since 1957, Bisco Misr and the 90 varieties of goods it offers have been part of many memories.
But all that might change. Or at least the ownership of Bisco Misr might change, in what seems to be an escalating bidding war between Kellogg, the Michigan-based cereal maker, and Abraaj Investment Management, the Dubai-based finance firm.
After shareholders with 56 percent of Bisco Misr agreed to sell to Abraaj for $11.27 a share, Kellogg returned with a higher bid at $11.50 per share on Sunday.
Bisco Misr recorded a net profit of $5.32 million in the first nine months of 2014, down 16 percent from $6.21 million in the same period of the previous year. The confectionery maker’s net profit for the financial year ending in December 2013 was $8.77 million, up from $5.79 million in the previous year.
“Whoever wants to get exposure into this market, it would like to look at someone like Bisco Misr,” said Allen Sandeep, Cairo-based director of research at Naeem Brokerage, to Bloomberg . “With a market that has a population of 90 million, you look at any sub-segments within the consumer and food sectors and there is massive potential.”
Since the 2011 revolution, foreign investments are starting to make their way back into Egypt. The Kellogg-Abraaj bidding race might suggest that reforms drafted and issued this year by the Egyptian government have been successful in attracting more foreign investments.
Over the past few years, Egyptians have seen many of their childhood landmarks lose their edge to privatization and foreign acquisitions, as seen with the department store chain, Omar Affendi. Will the same happen to the biscuits and cake maker, or will Egyptians retain the same thrill of munching at the different seasonal and everyday goodies from Bisco Misr, no matter who the owners are?