Egytrans approves acquisition of 99.9% of NOSCO: Egytrans’ general assembly has approved the acquisition of 99.9% of National Transport and Overseas Services Company (NOSCO) via a share swap, Egytrans said in a disclosure (pdf) yesterday. “The acquisition should be finalized in around two to three months,” Egytrans CEO Abir Leheta told us, adding that both companies’ management teams will stay onboard.

The details: Egytrans will exchange one of its shares for every 0.0447 share of NOSCO’s capital. This will see the company acquire 2,999,971 of NOSCO’s shares and in return issue 67,112,933 new shares to NOSCO shareholders. A fair value study had valued NOSCO at EGP 58.033 per share and Egytrans at EGP 2.594.

Egytrans’ fleet will triple in size upon completion of the acquisition, Leheta told us. “Currently, Egytrans operates 25 regular trucks, while NOSCO has 137 regular trucks, in addition to the specialized vehicles each company operates,” she added. “Integrating our fleets will provide us with a stronger operational base, enhancing our capacity,” she said. “There are a lot of synergies between both companies. By combining our market shares, we aim to create a stronger and more competitive entity.”

Background: EGX-listed Egytrans offers air, sea and land transport services as well as customs clearance and storage. NOSCO is a private trucking company which has seen several national projects in Egypt, including power stations and refineries, the Zohr natural gas field and the Cairo monorail. Egytrans’ board of directors approved the acquisition — which has been in the works since at least October— earlier this year.

Advisors: Egytrans hired Zaki Hashem and Partners as its 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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