Consortium bids for a further 13.42% of Spinalex, stopping just before a mandatory buyout

A consortium of New Construction Chemical (NCC) and Escom for Real Estate Investment is moving to lift its stake in EGX-listed Alexandria Spinning and Weaving (Spinalex) to just under the mandatory offer threshold, launching a voluntary tender offer for up to 48.41 mn shares — 13.42% of the company — according to an EGX bulletin.

The consortium is offering EGP 15 per share, valuing the target stake at EGP 726.15 mn, per the offer documents (pdf), which the Financial Regulatory Authority (FRA) approved for publication. The offer runs for 20 business days, starting today through 3 August.

The ownership math: The consortium and related parties already hold 70.63 mn Spinalex shares, or 19.58%. A full uptake would take them to 33.00% — parking them just below the 33.33% boundary that would force a bid for the rest of the company. The structure looks deliberate: the bidders originally drafted the offer at up to 72.07 mn shares (c.20%) in April, then trimmed it to the 13.42% that lands them exactly at the ceiling.

Price check: The bid is a slim premium to where Spinalex already trades. The stock closed at EGP 14.49 yesterday — up +2.26% from its undisturbed price — putting the EGP 15 offer barely 3.5% above market. The larger premium in the offer documents is against a stale trailing average: EGP 15 is about 21.54% above the six-month average of EGP 12.342 and 20.68% above the three-month average of EGP 12.429, by our math. The offer document cites a 20.68% premium to the six-month average — though that figure actually matches the three-month average.

Regulatory green light: The Egyptian Competition Authority ruled in April that the acquisition doesn't constitute an economic concentration, and the consortium has an EGP 726.15 mn financing letter from the Export Development Bank of Egypt, valid through end-September.

Why it matters: Spinalex may not be an EGX30 name, but the bid is still significant because it tests how the market prices tightly held listed companies — particularly those whose value may sit as much in assets, operating infrastructure, and export capacity as it does in current earnings. For investors, this is where an asset-rich company becomes cheap. Spinalex’s earnings have weakened — swinging to a FY 2024-25 loss before reporting a near-breakeven 1Q FY 2025-26 income on lower revenues. But its latest available financials show a sizable asset base — amounting to EGP 1.12 bn last year — that historical-cost accounting likely understates.

MEANWHILE- The sector itself is getting fresh attention as the state pushes integrated textilezones and export-facing textile capacity. That push began to bear fruit with new and sizable textile projects, including Crystal International’s integrated textile complex and Cloud Chain’s planned Port Said textile city.

ADVISORS- Beltone Securities Brokerage is broker to the buyer, Egytrend Financial Consultancy is financial advisor, and Global Consulting Group is counsel.

What’s next: Spinalex’s board must issue its view on the offer within 15 days of FRA approval and appoint an independent financial advisor to value its shares.