Eagle Chemicals to launch rival MTO for Pachin: Shareholders in EGX-listed Pachin will get a 10-day window to sell their shares to Eagle Chemicals after the Financial Regulatory Authority (FRA) yesterday approved its offer to acquire at least 75% of the state-owned company, the regulator said in a statement (pdf). The mandatory tender offer (MTO) will open once the company publishes an announcement.

REFRESHER- Eagle Chemicals on Monday raised its offer to EGP 37.00 per share — EGP 1.00 higher than the rival bid submitted by National Paints Holding (NPH) last week. The Egyptian chemicals company’s revised offer values Pachin at some EGP 888 mn. Pachin shareholders have until Tuesday, 4 April to respond to NPH’s MTO.

Eagle Chemicals wants to take Pachin private: Eagle would delist Pachin from the EGX within six months of the transaction closing. Eagle Chemicals is committing to maintaining Pachin’s existing workforce for 12 months after the acquisition, according to the statement.

What’s next: If shareholders accept the offer, the transaction will be executed on the EGX within the following five working days, according to the statement.

Market reax:Pachin’s shares rose 5.1% to EGP 37.82 yesterday.

Part of the privatization program: 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 approximately 54% owned by state-owned companies and banks.

Advisors: Al Ahly Pharos is financial advisor to Pachin while Shalakany Law Office is counsel. HC Brokerage is brokering the transaction. Nour Law Office is buy-side counsel alongside Al Tamimi & Company.

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