Arab Finance: Raya Holding for Financial Investments has conditionally approved a capital contribution of up to $60 million toward a proposed acquisition of a data center facility in Egypt, according to a disclosure to the Egyptian Exchange (EGX).

The proposed deal would involve the purchase of 100% of the facility’s equity. After reviewing the binding offer and financing structure, Raya Holding’s board approved a subscription by its subsidiary Raya Information Technology (Raya IT) to a capital increase at Raya Data Center. The proceeds would be used exclusively to fund the equity portion of the dollar-denominated acquisition price.

The subscription could be paid in one or more tranches, in USD, EGP or a combination of the two, depending on the transaction’s financing needs. Total funding is capped at $60 million or its equivalent in EGP. The board confirmed that Raya IT’s allocated contribution is available and free of rights, liens, or other restrictions on its use, and that the necessary internal approvals to commit the funding are in place.

The board also authorized the chairman and managing director to verify that the conditions for the approval have been met and to arrange the timing, subscription, and payment of any funding tranches. The approval will take effect only if the acquisition is awarded to Raya IT and/or Raya Data Center, the transaction is completed, final documents are signed, and all required approvals and conditions are fulfilled.

If the deal is not awarded or does not close, Raya Holding and its subsidiaries will have no obligation to increase capital or provide funding, and the approval will remain ineffective.