Egytrans is one step closer to acquiring NOSCO via a share swap: Egytrans’ board of directors approved the acquisition of trucking firm the National Transport and Overseas Services Company (NOSCO) at a meeting yesterday, it said in a statement (pdf). The transaction will see the company acquire 99.9% of NOSCO’s shares via a share swap and values NOSCO at around EGP 174.1 mn, according to our math. The acquisition is conditional on the approval of Egytrans’ shareholders at a meeting on 14 May, said Egytrans Chairman Mohamed Gamal Moharam.

The details: Egytrans will exchange one of its shares for every 0.0447 shares of NOSCO’s capital. This will see the company acquire nearly 3 mn of NOSCO’s shares and in return issue 67.1 mn new shares to NOSCO shareholders. A fair value study valued NOSCO at EGP 58.033 per share and Egytrans at EGP 2.594.

About the two firms: EGX-listed Egytrans offers air, sea and land transport services as well as customs clearance and storage. NOSCO is a private trucking company that has implemented several national projects including power stations and refineries, the Zohr natural gas field, the Cairo monorail, and the transport of the Ramses II statue to the Grand Egyptian Museum (GEM).

Background; The acquisition has been in the works since at least October, when Egytrans said (pdf) the two were exploring a share swap arrangement. The company said in March that it expected to close the transaction during the first half of the year.

The move falls in line with Egytrans’ expansion and growth strategy: The company aims to “strengthen the executive and operational capabilities of the group” and target larger logistics projects by using Nosco’s fleet and technical expertise, CEO of Egytrans Abir Leheta said.

Advisors: Egytrans hired Zaki Hashem and Partners as its legal counsel for the transaction, while NOSCO appointed Catalyst Partners as financial consultant and transaction manager. Archer Financial Advisors performed the fair value assessments.

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