That’s a wrap on the play for Pachin: Dubai-based National Paints Holding (NPH) has acquired over 80% of EGX-listed Paint and Chemical Industries (Pachin) for around EGP 770.5 mn in its mandatory tender offer that wrapped yesterday, Pachin said in an EGX filing (pdf). Shareholders sold 19.36 mn shares to the Emirati company, which had offered to purchase up to 100% of the firm at EGP 39.80 apiece.

Who sold? Government agencies offloaded their entire stakes in the company, a source with knowledge of the matter told Enterprise. State-owned Chemical Industries Holding (CIHC, 44.63%), Banque Misr (10.52%), and Misr Ins. (1.25%) sold down their full stakes, together representing 56.40% of the company’s share capital. All three were long-term shareholders; no figures are available on the composition of other sellers.

The end of heated bidding war: The end of the MTO concludes what was a protracted bidding process between NPH and Eagle Chemicals. The back-and-forth of bids and counter-bids saw Pachin’s value more than double to EGP 955.2 mn. The first offer, lodged by Saybad Industrial Investment last July, valued the company at EGP 384-396 mn

Market reax: Pachn’s shares fell 1.4% to EGP 38.50 at yesterday’s close.

Part of a bigger plan: Pachin welcoming new owners comes as part of the government’s privatization plan, which should see it reduce its involvement in or exit certain industries to make way for the private sector.

ADVISORS- Al Ahly Pharos was financial advisor to Pachin, while Shalakany Law Office was counsel. Matouk Bassiouny & Hennawy acted as NPH’s legal counsel. Al Ahly Pharos also brokered the transaction.

This story was corrected on 3 May, 2023 to reflect that Al Ahly Pharos, not HC Securities, brokered the transaction. 

Tags: