Daughters of late Egyptian billionaire transfer $55.8 million in shares to family investment vehicle
The Khamis family owns a controlling interest of 56.58 percent in Oriental Weavers.
Yasmine and Farida Mohamed Farid Khamis, daughters of the late Egyptian billionaire Mohamed Farid Khamis, have transferred ownership of their Oriental Weavers shares, worth EGP1.375 billion ($55.8 million), to their family investment vehicle, FYK Limited.
The shares, which each represented a 12.3-percent stake in the company, were transferred for EGP687.72 million ($27.8 million).
The transaction, executed by EFG Hermes Financial Brokerage Company, a subsidiary of EFG Hermes, increased FYK Limited’s stake in Oriental Weavers Carpet to 24.61 percent, making the family investment vehicle a leading shareholder in the company.
Oriental Weavers is a leading manufacturer and distributor of carpets, operating in approximately 150 countries worldwide. It is led by Yasmine Mohamed Farid Khamis, the chairman of the company, and other family members of the late Mohammed Farid Khamis.
The Khamis family owns a controlling interest of 56.58 percent in Oriental Weavers, making them among the wealthiest investors on the Egyptian Exchange.
Despite a 13-percent increase in revenue from EGP7.4 billion ($302.6 million) to EGP9.5 billion ($388.5 million) in the first nine months of the current fiscal year, Oriental Weavers saw a decline in profit of 39 percent, from EGP960 million ($39.3 million) to EGP583 million ($23.9 million).
This decline has been attributed to higher costs for oil-based raw materials and lower volumes, leading to higher unabsorbed costs for the company.
The ownership transfer of Yasmine and Farida Mohamed Farid Khamis’ Oriental Weavers shares to FYK Limited is a strategic move that will allow the family to further consolidate their control over the company and potentially explore new growth opportunities.
It will be interesting to see how this move impacts the future performance of Oriental Weavers and the role that FYK Limited plays in the company’s ongoing success. As one of the largest carpet manufacturers and distributors in the world, Oriental Weavers will continue to be a major player in the industry for years to come.