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Sunday, 5 March 2023

Egytrans hopes to acquire trucking firm NOSCO by end of 1H 2023

Egytrans wants NOSCO: Transport player Egytrans expects to wrap a majority acquisition of trucking firm National Company for Transportation and Overseas Services (NOSCO) before the end of 1H 2023, Egytrans CEO Abir Leheta said during a press conference on Thursday, according to Al Mal.

We don’t have the details yet: Leheta didn’t disclose how much of NOSCO Egytrans is eyeing. Due diligence is still underway to determine the transaction’s value, which will be announced upon its completion, she added.

They could go the share swap route: Egytrans in October said (pdf) its board had agreed to pursue the NOSCO acquisition and that the two firms were considering executing the transaction through a share swap. Under the arrangement, NOSCO shareholders would receive new shares in Egytrans via a capital increase. The final method of the transaction will depend on the results of an independent fair value study.

About the two firms: EGX-listed Egytrans offers air, sea, and land transport services as well as customs clearance and storage. The company’s net income jumped more than 150% y-o-y to EGP 46 mn in 2022, on revenues of EGP 400 mn. NOSCO is a private trucking firm with more than 130 trucks as well as a specialized fleet for heavy and oversized cargo. It has worked on major national projects including power stations and refineries, the Zohr natural gas field, the Cairo monorail, and the transport of the Ramses II statue to its current location at the Grand Egyptian Museum (GEM).

What’s next: Once due diligence and valuations wrap, the transaction will still need the greenlight from regulators and shareholders of both firms.

Advisors: Egytrans hired Zaki Hashem & Partners as its counsel for the transaction, while NOSCO appointed Catalyst Partners as its financial advisor and transaction manager.

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