NPH raises its bid for Pachin: Dubai-based National Paints Holding (NPH) has upped its offer for EGX-listed Paint and Chemical Industries (Pachin) in response to Eagle Chemicals’ new bid last week, the Financial Regulatory Authority (FRA) said in an EGX disclosure (pdf) on Thursday.

The Emirati firm is now offering to purchase at least 75% of the state-owned company for EGP 37.75 per share, up from its earlier offer of EGP 36.00 per share, the statement reads. This is EGP 0.75 per share higher than Eagle Chemicals’ most recent EGP 37.00 bid. NPH’s new offer values the company at EGP 906 mn, according to our calculations. Everything else in the NPH offer is unchanged, according to the statement.

REMEMBER- Pachin shareholders have until market close on 12 April to decide if they want to part with their shares to either NPH or Eagle Chemicals.

Market reax:Pachin’s shares rose 3% to EGP 39.71 on Thursday.

Compass Capital: raise or fold? An unconfirmed local media report last week claimed that Compass Capital is preparing to submit a rival MTO within days. The company has reportedly completed due diligence on Pachin and is ready to put a rival bid to shareholders, unnamed sources close to the matter reportedly said. Compass in January submitted a non-binding offer to acquire a stake of 51-90% in Pachin for EGP 30.00 per share.

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 financial advisor to Pachin while Shalakany Law Office is counsel. Matouk Bassiouny & Hennawy are acting as NPH’s legal counsel, while Nour Law Office is counsel to Eagle Chemicals alongside Al Tamimi & Company. Marei, Fayez, Dardiry & Partners is legal advisor to Compass Capital. HC Brokerage is brokering the transaction.

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