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Tuesday, 30 July 2019

ACCH to offer 20% stake under state privatization program

IPO WATCH- ACCH to offer 20% stake under state privatization program: Alexandria Container and Cargo Handling (ACCH) will offer 20% of its shares at EGP 15.6 apiece as part of the government’s long anticipated IPO program, according to Al Mal. Sources said that 15% of the company’s shares will be allocated to institutional investors in a secondary offering and the remaining 5% will be offered publicly on the EGX. EFG Hermes and Citi, who are advising for ACCH, concluded roadshows in London and Dubai last month and will soon visit the US.

The EBRD has expressed interest in ACCH: The European Bank for Reconstruction and Development (EBRD)’s Managing Director for the Southern and Eastern Mediterranean Janet Heckman said earlier this month the bank has its eye on the ACCH secondary offering as part of its plans to expand its private equity portfolio in Egypt. It said it was committed to investing north of EUR 1 bn in Egypt in 2019, including buying into companies in the state privatization program.

Advisors: Zaki Hashem & Partners will act as the shareholders’ local counsel for the stake sale, while White & Case will take on a role as international counsel.

Background: Share sales under the privatization program are not expected to take place before September, Public Enterprises Minister Hisham Tawfik told us earlier this month. Eastern Tobacco piloted the program with the sale of a 4.5% stake earlier this spring. It is widely believed that Enppi will be the first company to go public.

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