Egypt regulator approves UAE’s National Paints Holding acquisition of Pachin

Egypt’s financial regulator FRA has approved on Sunday Dubai-based National Paints Holding’s (NPH) offer to acquire Egyptian state-owned Paint and Chemical Industries (Pachin).

Pachin’s Shareholders now have 10 working days to respond to NPH’s takeover bid. The 10-day mandatory tender offer (MTO) already starts on Monday, giving shareholders until April 2 to decide whether to sell their shares.

The Emirati firm is offering to buy at least 75 percent of Pachin’s shares for 34.00 Egyptian pounds ($1.10) a share, valuing it at some 816 million pounds. It had already raised its offer earlier this month from its initial 29.00-pound bid in November in response to a number of competing bids.

Shareholders owning at least 75 percent of Pachin’s shares will need to agree to sell for the acquisition to go through, the FRA said in a statement.

Pachin is majority-owned by state institutions, with Chemical Industries Holding having a 44.6 percent stake and Banque Misr holding a 10.5 percent stake. Other major shareholders include AMN Industrial Investment, which has a 9.7 percent stake and El Sayed Saber of 5.5 percent. Some 28.7 percent of its shares are free float.

According to FRA statement, the Emirati firm is c omitted to maintaining Pachin’s existing workers for the first 12 months after the acquisition. Pachin’s shares would undergo voluntary delisting from the Egyptian Exchange (EGX) within six months of the acquisition closing.

If the shareholders approve the offer, the transaction will be concluded on the EGX within the following five working days, the statement added.

Al Ahly Pharos acts as broker on the transaction, Matouk Bassiouny & Hennawy are NPH’s legal counsel, while the company does not have a financial advisor.

Al Ahly Pharos is advising Pachin, while Shalakany Law Office acts as the legal counsel.