Sidpec wants Ethydco: EGX-listed Sidi Kerir Petrochemicals (Sidpec) wants to fully acquire subsidiary Egyptian Ethylene and Derivatives Company (Ethydco) through a share swap, Chairman Mohamed Ibrahim told CNBC Arabia yesterday (watch, runtime: 9:45), adding that Sidpec expects to wrap up the acquisition in less than a year.

Sidpec’s board will discuss the acquisition during an extraordinary general assembly meeting on Thursday, 20 November, according to EGX disclosures (pdf), (pdf).

Sidpec already owns a 20% stake in Ethydco —- making it the company’s second-largest shareholder after the Petrochemicals Holding Company, which holds 21%, according to Ethydco’s website. Remaining shareholders include Gasco, Al Ahly Capital Holding, the National Investment Bank, Banque Misr and Nasser Social Bank.

The potential upsides: “If the acquisition goes through, it will give both companies the chance to boost their revenues and increase their production capacity,” Ibrahim said.

More M&A ahead: Sidpec has other local acquisitions in the pipeline after the Ethydco transaction, Ibrahim said.

Advisors- Sidpec has tapped NI Capital as advisor, according to a statement (pdf) to the bourse. Ibrahim said that neither side has yet appointed legal or financial advisors.