The UAE’s National Paints acquired on Tuesday 81% of Egypt’s state-owned Paint and Chemicals Industries (Pachin), purchasing a total of 19.358 million of the company’s shares in a deal worth EGP 770.4m (about $25m).
Among the sellers were the Chemical Holding Company, which is the main shareholder, Banque Misr and a number of other shareholders.
The company is considered the first of the government IPO programme deals that was announced by Prime Minister Mostafa Madbouly at the end of last February, which includes about 32 government companies, including 3 Egyptian banks.
Sources connected to the deal told “daily news” that the Emirati company is considering keeping Pachin listed on the Egyptian Stock Exchange during the coming period.
The Holding Company for Chemical Industries, one of the companies of the Ministry of Public Business Sector, owns the main stake of 44.6%, while Banque Misr owns an estimated stake of 10.52%, the share of AMAN Industrial Investment Company is 15%, and the Egyptian Global Investment Fund 3.91%, in addition to Briarwood Capital.
Eagle Chemicals and National Dyes competed for the company, and after several bids, the Emirati company offered the highest price, amounting to 39.8 pounds per share.
The National Investment Bank, Pharos, will assume the role of the financial advisor to the “Pachin” company in the deal, and the Shalakany Office for Legal Consultations and Lawyers will act as the company’s legal advisor.
The company recorded a net profit of EGP 19.5m from the beginning of July until the end of December 2022, compared to losses of EGP 12.8m during the same period of the last fiscal year.
The company’s sales rose, during the first six months of this fiscal year, to reach EGP 486.39m at the end of December, compared to EGP 427.9m during the same period of the last fiscal year.