Bidding war for Pachin continues to heat up: Eagle Chemicals yesterday boosted its offer for EGX-listed Paint and Chemical Industries (Pachin) in response to Dubai-based National Paints Holding’s (NPH) new bid last week, the Financial Regulatory Authority (FRA) said in an EGX disclosure (pdf) yesterday. Eagle Chemicals is now offering to purchase at least 75% of Pachin for EGP 37.00 per share, EGP 1.00 higher than the bid NPH put in at the end of last week. The Egyptian chemicals company’s revised offer values Pachin at some EGP 888 mn, according to our math.

Up next: The FRA is studying Eagle Chemical’s revised offer. Pachin shareholders have until Tuesday, 4 April (one week from today) to respond to NPH’s mandatory tender offer.

Is Compass still in the running? Compass Capital had offered to buy 51-90% of the company’s shares at EGP 30.00 per share back in January and hasn’t revised its offer since.

Market reax: Pachin’s shares fell 3.1% to EGP 36.00 yesterday.

It’s all part of the state’s privatization plans: 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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