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Monday, 10 June 2019

GCC-Egyptian consortium looking to acquire Emisal Salts for at least EGP 700 mn

M&A WATCH- A bidding war for Emisal Salts? A consortium made up of Kuwait’s Al Madar Finance and Investment and the Saudi-Egyptian Industrial Investment (SEII) is looking to acquire Emisal Salts, potentially triggering a bidding war with Egypt Kuwait Holding. The consortium has offered EGP 700 mn as a starting bid, in a challenge to EK Holding which offered an undisclosed amount for Emisal back in February. The company said in its 1Q2019 earnings release (pdf) that it has “conducted full due diligence on Emisal Salts” and that the company’s board has approved an offer.

Why Emisal? It’s a great import-substitution play. The company has a natural competitive advantage (the natural ‘infrastructure’ takes forever to build) and produces raw materials for everything from table salt to detergent and high-grade salts used in the food and pharmaceuticals industries. You can learn more about the company on its website.

The new bidders are asking the National Bank of Egypt for permission to start due diligence. NBE is leading the sale process on behalf of other state-owned shareholders.

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