Sidpec is moving ahead with merger with Ethydco:Sidi Kerir Petrochemicals Company’s ( Sidpec) board of directors signed off on the company’s all-share merger with the Egyptian Ethylene and Derivatives Company (Ethydco), after approving Baker Tilly’s valuations, the company said in an EGX disclosure (pdf) yesterday. Baker Tilly’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).

Market reax: Sidpec’s shares rose 1.08% during trading yesterday to close at EGP 23.45.

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 said that it plans to finalize the merger by the end 3Q 2023. Sidpec completed due diligence in March, and earlier this month approved the fair value studies.

We’re presuming a takeover is now off the table: Abu Dhabi sovereign wealth fund acquire d 25-30% of Ethydco in a recent sale by the government.

Capital increase greenlit: Sidpec’s board also signed off on a capital increase of up to c.877 mn shares, with these shares earmarked for Ethydco shareholders responding to the swap merger, the disclosure reads.

Advisors: NI Capital is advising Ethydco on the acquisition. Baker Tilly acted as financial advisor.

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