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Thursday, 11 August 2022

The bidding war for Pachin is heating up

Saybad ups its offer for Pachin: Saybad Industrial Investment has increased its offer for Paint and Chemical Industries (Pachin) to EGP 16.50-18.75 per share, it said in an EGX disclosure (pdf). The new offer would value the EGX-listed company at up to EGP 450 mn, according to our calculations. The upper end of the price range is 14% higher than its initial EGP 16-16.50 offer, which was rejected by Pachin for being too low.

The bidding war is now in full swing: The top end of Saybad’s revised offer comes in above the maximum bid that Universal Building Materials and Chemicals (Sipes) put in for Pachin earlier this week. Sipes is offering to purchase at least 60% of the state-owned company for between EGP 17.50-EGP 18.50 per share.

Market reax: Pachin’s shares jumped 1.65% on the news to close at EGP 17.22 yesterday.

Part of the government’s privatization plans: The bids come as the state looks to reduce its involvement in or exit certain industries to make way for the private sector. Pachin is currently approximately 54% owned by state-owned companies and banks.

ADVISORS- Catalyst Partners is acting as Pachin's financial advisor. Adsero–Raji Soliman & Associates is the firm’s legal advisor.

IN OTHER M&A NEWS-

Oriental Weavers is exiting the Chinese market after its board agreed to accept an offer to sell its Chinese unit to an unnamed buyer, it said in an EGX disclosure (pdf). The company has been considering the offer since last year, weighing its options between selling or liquidating its Chinese subsidiary.

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