Back to the complete issue
Sunday, 17 October 2021

Egytrans walks away from HAUH takeover bid

Egytrans pulls the brakes on HAUH takeover: A potential reverse merger between Egytrans and Hassan Allam Utilities Holdings (HAUH) subsidiary Hassan Allam Utilities BV appears to have fallen through after the two sides failed to agree on a fair value, the transportation firm said in an EGX disclosure (pdf). The shelved agreement would have been key to Hassan Allam Utilities’ expansion into transportation. Back in March, Egytrans had accepted an offer submitted by HA Utilities to acquire a controlling stake in the company via a share swap that would have seen Egytrans acquire 100% of HA Utilities BV in exchange for HAUH acquiring a 65% stake in Egytrans. HA Utilities BV had been valued at EGP 721.5 mn in a fair value assessment by Grant Thornton, while Egytrans’ shares were set at EGP 12.90 apiece, bringing its total value to EGP 414 mn.

It’s unclear how the transaction subsequently fell apart, but Egytrans has had more than one suitor: After opening talks with HAUH, Egytrans appeared to have attracted interest from Paradigm Logistics as well, but the potential Paradigm transaction fell through in May. Paradigm was willing to pay EGP 460 mn — which was higher than the EGP 414 mn HAUH had initially offered — but the Financial Regulatory Authority (FRA) stepped in and broke up the party. Paradigm had proposed to swap its 72% stake in shipping company Ostool, in exchange for new shares in EgyTrans, but the FRA said the offer had no grounds since Paradigm apparently never completed its purchase of stake in Ostool and was still paying it off. Egytrans then returned to the negotiating table with HAUH, but it is unclear whether HAUH made changes to its bid.

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; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.