MEG shareholders have 19 working days to respond to MENA Glass’ offer: Shareholders of EGX-listed bottle maker Middle East Glass (MEG) have until Thursday, 22 August to respond to parent company MENA Glass’ MTO for an additional 40.8% of the company, according to an EGX bulletin (pdf).

ICYMI: MENA Glass Holding submitted a mandatory tender offer earlier this month to acquire an additional 40.8% — 25.5 mn shares — in MEG in a USD 57.8 mn transaction. MENA Glass Holding already holds 52.9% of MEG, while Gulf Capital’s 36.9% stake (owned through special purpose vehicle MTM Packaging 2) makes it the second-largest shareholder. IGC Holdings owns 6.3%.

It is looking unlikely that MENA Glass will get the entire 40.8% it’s eyeing, after IGC rejected the offer.

The pricing: MENA Glass will pay USD 2.26 per share, a 774% premium on MEG’s average share price of EGP 12.54 over the six months ending on 21 April. This price tag would put the transaction value at some USD 57.8 mn if the buyer ends up securing the full 40.8% and at some USD 52.2 mn if it only secures Gulf Capital’s stake.

Part cash, part installments: Gulf Capital has agreed to payment terms that will see MENA Glass pay USD 30 mn in cash once the offer expires, with the remaining USD 22.3 mn to be paid in installments.

What they said: MEG’s board said it expects the acquisition to “result in positive impact on the company and ensure the implementation of the business plans and the employees development programs due to the administrative and technical experience and the financial soundness of Mena Glass Holdings,” according to an EGX disclosure (pdf).

Advisors: EFG Hermes was tapped to broker the acquisition, while Bahaa Eldin Law Office and MENA Associates are acting as the buy-side legal advisor. MEG tapped Tanami Financial Advisory as its independent financial advisor to conduct the fair value study, while Arqaam Capital is sell-side advisor.

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