{"id":589637,"date":"2023-07-06T00:00:00","date_gmt":"2023-07-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/06\/sidpec-approves-fair-value-studies-ahead-of-ethydco-merger\/"},"modified":"2023-07-06T00:00:00","modified_gmt":"2023-07-06T00:00:00","slug":"sidpec-approves-fair-value-studies-ahead-of-ethydco-merger","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/06\/sidpec-approves-fair-value-studies-ahead-of-ethydco-merger\/","title":{"rendered":"Sidpec approves fair value studies ahead of Ethydco merger"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span> <\/span><span style=\"font-weight:700\">Sidpec, Ethydco valuations out ahead of potential merger: <\/span><span>Sidi Kerir <\/span><span>Petrochemicals (Sidpec) board has approved Baker Tilly\u2019s valuations ahead of a potential all-share merger with the Egyptian Ethylene and Derivatives Company (Ethydco), the company said in an <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/ent.news\/2023\/7\/139.pdf\" style=\"\">EGX disclosure (pdf)<\/a><\/span><span> yesterday<\/span><span>. The accounting firm\u2019s <\/span><span>assessments <\/span><span>p<\/span><span>eg Ethydco\u2019s valuation<\/span><span style=\"font-weight:400;\"> at EGP 33.5 bn (around EGP 2,420.09 per share) and Sidpec\u2019s at c.EGP 23.1 bn (around EGP 30.60 \/ share).<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Sidpec shares undervalued on the EGX? <\/span><span>The company\u2019s shares closed up 4.0% at EGP <\/span><span style=\"font-weight:400;\">23.81 apiece yesterday \u2014 still more than 20% below Baker Tilly\u2019s valuation. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Remember: <\/span><span>EGX-listed Sidpec, which currently owns 20% of Ethydco, has been in the process of acquiring the remaining shares in the company <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/84c8f27c-1814-4643-898c-23f0fe081b81\" style=\"\">since last year<\/a><\/span><span>. The firm was said in March to have <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4a1a65e5-67f9-401c-9038-63343efcdc10\" style=\"\">completed due diligence<\/a><\/span><span>. It remains unclear how much it plans to offer to acquire the company.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Ethydco has been earmarked for privatization:<\/span><span> The company<\/span><span>was among <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a94808c5-7a0c-4027-a786-804f2dc35954\" style=\"\">the 32 names<\/a><\/span><span> flagged for privatization by the government for privatization earlier this year. Gulf investors have expressed interest in acquiring stakes in the <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/8139ef09-3213-43db-bdbd-3aa9d0fd88dc\" style=\"\">merged entity<\/a><\/span><span>, according to one local media report, while <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/0d847d66-93a0-4331-91ea-aa1b713ef452\" style=\"\">another<\/a><\/span><span style=\"font-weight:400;\">says Sidpec could IPO Ethydco in a 10% stake sale via the EGX. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Advisors:<\/span><span style=\"font-weight:400;\"> NI Capital is advising Ethydco on the acquisition.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethydco remains on the auction block as part of the rebooted privatization program<\/p>\n","protected":false},"author":1,"featured_media":589638,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7363],"tags":[72,6815,7128,706],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-589637","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ma-watch","tag-enterpriseam","tag-ethydco","tag-ma-watch","tag-sidi-kerir-petrochemicals","wpautop","entry"],"acf":{"mongo_id":"2918bae0-3450-4a3b-ac51-a0058d107139","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/7\/179.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Sidpec approves fair value studies ahead of Ethydco merger","related_issue":[589622],"teaser":"Ethydco remains on the auction block as part of the rebooted privatization program","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/7\/.1eaa3bff-2ba5-4b25-a54d-7416febdb417.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Sidpec approves fair value studies ahead of Ethydco merger - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2023\/07\/06\/sidpec-approves-fair-value-studies-ahead-of-ethydco-merger\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sidpec approves fair value studies 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