Egytrans is one step closer to acquiring NOSCO via a share swap: Egyptian logistics firmEgytrans’board of directors approved the acquisition of Egyptian trucking firm the National Company for Transportation and Overseas Service Company (NOSCO) at a meeting yesterday, it said in a statement (pdf). The transaction will see the company acquire 99.9% of NOSCO’s shares via a share swap, and values the company at around EGP 174.1 mn, according to our math. The acquisition is conditional on the approval of Egytrans’ shareholders at a meeting on 14 May, Egytrans Chairman Mohamed Gamal Moharam said.

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 valued NOSCO at EGP 58.033 per share and Egytrans at EGP 2.594.

About the two firms: 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.

Background: The acquisition has been in the works since October when Egytrans said (pdf) the two were exploring a share swap arrangement. The company said in March that it expected to close the transaction during the first half of the year.

The move falls in line with Egytrans’ expansion and growth strategy: The company aims to “strengthen the executive and operational capabilities of the group” and target larger logistics projects by using Nosco’s fleet and technical expertise, Egytrans CEO Abir Leheta said.

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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