Back to the complete issue
Monday, 31 August 2020

IMEX International acquisition over Nile Cotton Ginning stumbles

M&A WATCH- Is IMEX International’s acquisition of Nile Cotton Ginning stumbling? Energy trading company IMEX International’s offer to acquire 50% of Nile Cotton Ginning has been plunged into uncertainty after majority shareholder Samir Afifiy and associates who collectively own 13% of the company refused IMEX’s offer price, unnamed sources told Al Mal. IMEX told the Financial Regulatory Authority last week that it would submit a mandatory tender offer for the company at EGP 50/share, a move which Afifiy described as “hostile,” and pledged not to accept any offer below EGP 70. Meanwhile, the workers’ union, which holds 7.06% of the company believes that the bid is suitable, given that the latest offer they received priced the shares at EGP 49 apiece, the sources said.

Advisors: The company has appointed EgyTrend as its financial advisor on the transaction.

Background: The company has been mired in a decade-long dispute that arose after a court ruling in 2011 to reverse the company’s Mubarak-era sale to private investors. The ruling nullified the privatization claiming that the company had been undervalued. An appeal was turned down in 2013 by the Administrative Court. The government’s investment dispute resolution committee reached a settlement agreement with the company that will see Nile Cotton pay EGP 231.1 mn to the Holding Company for Construction and Development. The agreement came as Nile Cotton’s shareholders were looking to reach a settlement in the hope of resuming trading the company’s shares on the EGX after an eight-year hiatus.

 

Corrected on 31 August 2020

Updated the homepage link for EgyTrend.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.