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Thursday, 27 May 2021

Sale of EgyTrans subsidiary could up its valuation

Paradigm Logistics has offered to sell its 72% stake in shipping subsidiary Ostool to EgyTrans through a share swap transaction, Paradigm said in regulatory filing (pdf). The statement did not note how many shares Paradigm will own in Egytrans following the transaction. Paradigm valued EgyTrans’ shares at EGP 14.7 apiece, bringing its total value to EGP 460 mn. Paradigm also values Ostoul to range between EGP 495-640 mn, noting that this will still need to be determined by an independent financial advisor. Paradigm had acquired 62.3% in Ostool from Raya Holding last month, giving it its current ownership level.

Paradigm’s valuation prompts EgyTrans to reconsider its sale price to HAUH: EgyTrans’ board voted to postpone its approval of a separate valuation report completed this week as part talks that would see it acquire 100% of the HA Utilities Holding (HAUH) subsidiary HA Utilities BV in exchange for HAUH acquiring a 65% stake in EgyTrans, according to a separate bourse filing (pdf) by EgyTrans. That report had attached a lower price of EGP 12.9, per-share, giving EgyTrans a valuation of EGP 414 mn.

Background: Egytrans had accepted in March an offer from HAUH to acquire a controlling stake in the company via a reverse merger. The transaction took a step closer this week, when the final fair value reports for both companies were finalized by Grant Thornton.

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