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Thursday, 15 November 2018

Thailand’s Indorama acquires 74% of bottle maker Medco Plast in EGP 843 mn transaction

M&A WATCH- Thailand’s Indorama acquires 74% of Medco Plast in EGP 843 mn transaction: Thailand’s Indorama Ventures bought 74% of Egypt Medco Plast for Packing and Packaging Systems for EGP 843 mn, it said in a statement.

What does Medco do? Medco makes some 70k metric tons of polymer PET preform containers each year on 11 production lines. It sells to “all the multinational soft drink and water manufacturers operating in Egypt” and estimates it has a 25% market share. “Medco’s strong presence in the domestic market and a longstanding customer relationship with all beverage majors operating in Egypt will enable the company to support growing local customers’ demand and provide a platform for further growth in the Middle East and African regions,” said IVL CEO Aloke Lohia.

Who’s selling? The selling shareholders include Middle East Glass Manufacturing (MEG) and the Samaha family. MEG will hold 16% share once the transaction is executed, while the Samahas will retain a 10% stake. MEG had signed a non-binding agreement to divest 74% of its shareholding in the company last year.

Advisors: HC Securities and Investment acted as the sole financial advisor to MEG and the Samaha family (its fifth M&A with MEG, it said in a statement). Matouk Bassiouny was counsel to MEG and Shehata Law Firm was counsel to the Samaha family. Baker & McKenzie was legal counsel to Indorama Ventures.

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