Back to the complete issue
Thursday, 22 December 2022

Pachin to respond to NPH bid as soon as January

To sell or not to sell? Paint and Chemical Industries (Pachin) could respond to the takeover offer from Dubai-based National Paints Holdings (NPH) as soon as early January, unnamed sources reportedly told Al Borsa. The Emirati firm is close to completing due diligence

and financial consultancy firm Elite is still working on the fair value study with the hopes of finalizing it before year end, the sources said.

REMEMBER- NPH launched a takeover bid for Pachin in November, offering to pay EGP 29 per share and valuing the EGX-listed company at EGP 696 mn. PH’s offer was the third offer Pachin received this year, following offers from Universal Building Materials and Chemicals (Sipes) and Saybad Industrial Investment that have since been withdrawn after being outbid by NPH.

Advisors: Al Ahly Pharos is providing financial advice to Pachin while Shalakany Law Office is counsel.

The play for Pachin comes amid the government’s privatization push, which should see it 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.

CORRECTION- 25 December, 2022
An earlier version of this story missed that Shalakany Law Office is Pachin’s counsel in the proposed transaction.


More Capricorn Energy shareholders have joined calls to oust its board, putting the company’s proposed tie-up with Israel’s NewMed at risk. Palliser Capital, the company’s third-largest shareholder, said yesterday that three other shareholders will back its call to force seven of the nine directors to resign — including the long-serving CEO Simon Thomson — at an upcoming board meeting due to the terms of the proposed merger.

Who’s in? Shareholders who collectively hold 39% of the company’s issued share capital are now in revolt against the board, the activist investor said. This includes the UK’s largest asset manager, Legal & General, and Irenic Capital Management, VR Global Partners and a fourth undisclosed shareholder. Legal & General Investment Management, which owns 4% of the energy company, told the Times yesterday that it thinks “a change of directors is now warranted.”

What’s the issue? Shareholders have previously voiced their opposition to the planned merger on the basis that it undervalues Capricorn and that it is “unnecessarily biased towards NewMed.”

What’s next: Palliser plans to convene a shareholder meeting at the end of January for a vote on whether to overthrow the board.

This is the second revolt this year: NewMed had proposed an all-share merger with Capricorn in October after shareholders blocked a previous merger plan with Tullow Oil on grounds that it undervalued the company.

Why do we care? Capricorn has a sizable portfolio of upstream assets in Egypt. The merger would hand the Israeli company (FKA Delek Drilling) control of Capricorn’s Egypt assets, paving the way for closer energy ties between Israel and Egypt.


A subsidiary of Aspire Capital Holding subsidiary (FKA Pioneers Holding) acquired an additional 6.61% stake in EGX-listed electric cables manufacturer Electro Cable for EGP 111.7 mn, bringing its total ownership to 20.09%, according to a disclosure to the bourse (pdf).

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.