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Thursday, 9 March 2023

Pachin expects fresh bids after NPH ups its offer

Pachin is waiting on more offers before it moves forward with a sale: The shareholders of Paint and Chemical Industries (Pachin) will not consider National Paints Holding’s (NPH) revised acquisition offer until the two other bidders in the race respond to the latest from the Emirati company, Al Mal reports, citing unnamed sources it says have knowledge of the matter.

REFRESHER- NPH on Monday submitted a mandatory tender offer (MTO) for the company, upping its bid to EGP 34.00 per share from the EGP 29.00 it offered in November. The offer values the company at some EGP 816 mn, according to our math.

Shareholders are expecting more competitive offers to roll in: The two other bidders for Pachin — Compass Capital and Eagle Chemicals — are still wrapping up due diligence on the firm and are expected to submit their own MTOs. Pachin shareholders expect the two firms to submit competitive offers that could force NPH to revise its own bid, sparking a fresh bidding war for the company, Al Mal’s sources reportedly said.

All three bidders submitted offers for the firm last year but said they would revise them after Pachin was included in the list of 32 state-owned firms up for stake sales under the Madbouly government’s privatization program. Our friends at Compass Capital had offered to buy 51-90% of the company’s shares at EGP 30.00 apiece while Eagle Chemicals offered EGP 29.50 for up to 100% of the company.

Advisors: Al Ahly Pharos is advising Pachin, while Shalakany Law Office is counsel. The advisors on the buy side were not disclosed.

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