The Board of Directors of the Paints and Chemical Industries Company (Pachin) will hold a meeting next Wednesday to discuss the full acquisition offer submitted by the International Company for Building Materials and Chemicals (Sipes).
Amr Ismail, the managing director of Pachin, told Daily News Egypt that the board of directors will discuss the offer, and will take the necessary measures, which may include appointing a financial advisor to determine the fair value of the company’s shares.
Meanwhile, Pachin revealed that it had received a letter from Sipes announcing its intention to submit a non-binding purchase offer on the company’s shares at an initial price ranging from EGP 17.5 to EGP 18.5 per share.
Sipes seeks to acquire 100% of Pachin’s issued capital, minus the number of shares needed for the company to continue to be listed on the Egyptian Exchange, with a minimum of 60% of the company’s issued capital for implementation.
Pachin explained that the initial price presented in the offer ranges between EGP 17.5 and EGP 18.5 per share, provided that Sipes initiates due diligence procedures on Pachin to determine the final purchase price.
Earlier this year, Pachin rejected a non-binding mandatory tender offer (MTO) from an industrial investment company to acquire at least 90% of Pachin’s issued capital, with a minimum of 51%, at an initial price ranging between EGP 16 and EGP 16.5 per share.