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Thursday, 27 May 2021

HA Utilities is one step closer to expanding into transport with EgyTrans acquisition

HA Utilities BV has been valued at EGP 721.5 mn in a fair value assessment from Grant Thornton, Egytrans’ financial advisor, ahead of a potential reverse merger between the two companies, Egytrans said in an EGX disclosure (pdf). The report valued Egytrans’ shares at EGP 12.90 apiece, bringing its total value to EGP 414 mn. These valuations are more or less in line with earlier estimates by HA Utilities BV’s parent company HA Utilities Holding (HAUH), which valued its subsidiary at EGP 680-800 mn and Egytrans at EGP 375-405 mn. Egytrans’ board members convened yesterday to consider the fair value assessment, which still requires sign-off from the Financial Regulatory Authority.

Background: Egytrans had accepted in March an offer submitted by HAUH to acquire a controlling stake in the company via a share swap that would see Egytrans acquire 100% of HAUH subsidiary HA Utilities BV in exchange for HAUH acquiring a 65% stake in Egytrans. The transaction is key to Hassan Allam Utilities’ expansion into transportation, CEO Mena Sadek told us in March.

Advisors: Grant Thorton and an unnamed investment bank will act as financial advisors to Egytrans, while Matouk Bassiouny & Hennawy will act as counsel. White & Case will serve as counsel to HAUH.

 

CORRECTED ON 27 May 2021-

Egytrans was valued at EGP 414 mn by the FV report, not EGP 404 mn as was reported this morning.

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