Egypt – Compass Capital is set to join the race to acquire Pachin in the next few days.
Daily News Egypt understood that the company is currently preparing a bid to join the acquisition race alongside Eagle Chemicals and National Paints.
Sources said that Elite, the independent financial advisor, is about to finish updating the fair value of Pachin’s shares to be handed over to the Financial Regulatory Authority (FRA).
National Paints raised Monday its offer price to EGP 39.8 per share instead of EGP 37.75 per share, to purchase up to 24 million shares, representing 100% of the company’s issued capital shares, with a minimum execution rate of 75%.
Sources close to the deal told Daily News Egypt last week that National Paints is considering raising the offer price to approximately EGP 40.
This is after Eagle Chemicals raised the bid price last week to EGP 39 instead of EGP 37.
The struggle to acquire the Paints and Chemical Industries Company, Pachin, became fiercer after it received a number of acquisition offers at varying prices from the Emirati National Paints Company and the Egyptian Eagle Chemicals.
In its recent meeting, the Pachin Board of Directors commented on the offer price of “Eagle Chemicals” before it was amended at EGP 37, that it was 20.6% higher than the average share price during the three months preceding the approval of the “Financial Regulatory Authority” on the offer submitted by the company on 18 December to 16 March trading session.
The offer price is 48% higher than the average share price during the six months preceding the approval of the “Financial Regulatory Authority” to publish the first submitted offer, and from 18 September 2022 to 16 March, and the Board of Directors suggested the feasibility of the proposed future development plan by the offeror.
The company indicated that the bidder pledged not to lay off the company’s employees during the twelve months following the date of implementation of the offer, except in accordance with the provisions of the Labour Law, and the Board of Directors stressed the need to adhere to the workers’ rights and benefits in force.