Sidpec, Ethydco valuations out ahead of potential merger: Sidi Kerir Petrochemicals (Sidpec) board has approved Baker Tilly’s valuations ahead of a potential all-share merger with the Egyptian Ethylene and Derivatives Company (Ethydco), the company said in an EGX disclosure (pdf) yesterday. The accounting firm’s assessments peg Ethydco’s valuation at EGP 33.5 bn (around EGP 2,420.09 per share) and Sidpec’s at c.EGP 23.1 bn (around EGP 30.60 / share).

Sidpec shares undervalued on the EGX? The company’s shares closed up 4.0% at EGP 23.81 apiece yesterday — still more than 20% below Baker Tilly’s valuation.

Remember: EGX-listed Sidpec, which currently owns 20% of Ethydco, has been in the process of acquiring the remaining shares in the company since last year. The firm was said in March to have completed due diligence. It remains unclear how much it plans to offer to acquire the company.

Ethydco has been earmarked for privatization: The companywas among the 32 names flagged for privatization by the government for privatization earlier this year. Gulf investors have expressed interest in acquiring stakes in the merged entity, according to one local media report, while anothersays Sidpec could IPO Ethydco in a 10% stake sale via the EGX.

Advisors: NI Capital is advising Ethydco on the acquisition.

Tags: