National Paints Holding (NPH) of Dubai captured over 80% of EGX-listed Paint and Chemical Industries (Pachin) in a mandatory tender offer that ended yesterday, according to Pachin in an EGX filing.
Shareholders sold 19.36 mn shares to the Emirati Company, which had offered to purchase up to 100% of the firm at 39.80 Egyptian pounds apiece.
Government agencies offloaded their entire stakes in the company, a source with knowledge of the matter told Enterprise. State-owned Chemical Industries Holding (CIHC, 44.63%), Banque Misr (10.52%), and Misr Ins. (1.25%) sold down their full stakes, together representing 56.40% of the company’s share capital. All three were long-term shareholders; no figures are available on the composition of other sellers.
The end of heated bidding war: The end of the MTO concludes what was a protracted bidding process between NPH and Eagle Chemicals. The back-and-forth of bids and counter-bids saw Pachin’s value more than double to 955.2 million Egyptian pounds. The first offer, lodged by Saybad Industrial Investment last July, valued the company at 384,396 million Egyptian pounds
Howeve, Pachn’s shares fell 1.4% to 38.50 million Egyptian pounds at yesterday’s close.
Pachin welcoming new owners comes as part of the government’s privatization plan, which should see it reduce its involvement in or exit certain industries to make way for the private sector.
The deal advisors: Al Ahly Pharos was financial advisor to Pachin, while Shalakany Law Office was counsel. Matouk Bassiouny & Hennawy acted as NPH’s legal counsel. Al Ahly Pharos also brokered the transaction
