Eagle Chemicals ups bid for Pachin: Eagle Chemicals yesterday increased its offer for Paint and Chemical Industries (Pachin) on the same day that National Paints Holding’s (NPH) rival mandatory tender offer (MTO) opened to shareholders. The Egyptian chemicals company offered to purchase at least 75% of the company for EGP 35.00 per share, EGP 1.00 higher than the bid submitted by NPH earlier this month, the Financial Regulatory Authority (FRA) said in a disclosure to the EGX (pdf) yesterday. Eagle Chemical’s revised offer values the EGX-listed company at some EGP 840 mn, according to our math.

This is a significant increase on its initial bid: Eagle Chemicals’ new bid is almost 20% higher than its initial EGP 29.5 per-share bid in December.

What’s next? The FRA is currently studying Eagle Chemicals’ new offer. NPH’s 10-day MTO opened yesterday, giving shareholders until Tuesday, 3 April to respond.

Your move, Compass: Compass Capital has also submitted a bid for the company but is yet to respond to NPH and Eagle Chemicals’ improved offers.

Market reax: Pachin’s shares rose 1.4% to EGP 33.66 during trading yesterday.

REMEMBER- The play for Pachin comes amid the government’s privatization push, which should see it reduce its involvement in or exit certain industries to make way for the private sector. Pachin is currently approximately 54% owned by state-owned companies and banks.

Advisors: Al Ahly Pharos is providing financial advice to Pachin while Shalakany Law Office is counsel.

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