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Thursday, 25 August 2022

Pachin taps Al Ahly Pharos to advise on takeover bids

Paint and Chemical Industries (Pachin) has tapped Al Ahly Pharos to advise it as it mulls multiple takeover bids, the EGX-listed paint company said in an EGX disclosure (pdf) yesterday. Pachin appointed the firm to “differentiate between bids submitted and negotiate the highest possible value for the share price,” it said.

Who’s offering what: In its latest bid, Saybad Industrial Investment offered to pay EGP 16.50-18.75 per share for up to 100% of the company, valuing it as much as EGP 450 mn. This was a revised offer in response to a rival bid from Universal Building Materials and Chemicals (Sipes) which said it would purchase up to all of the company’s shares at EGP 17.50-18.50.

Pachin wants more: Pachin’s largest shareholder, Chemical Industries Holding Company (CIHC), wants to conduct its own fair value study because the offers “do not reflect the fair value” of Pachin, Chairman Emad El Din Mostafa told us earlier this week.

Advisors: Adsero–Raji Soliman & Associates is the firm’s legal advisor. CIHC is also looking to appoint investment bankers.

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