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Egypt: Eagle Chemicals Raises Bid for Acquiring Pachin Shares

The Financial Regulatory Authority (FRA) has agreed to amend the price of the purchase offer submitted by Eagle Chemicals to acquire the shares of the paints and chemical industries company Pachin for the second time.

The authority stated in a statement that the price became EGP 39 instead of EGP 37 per share, so the offer exceeded the price of Pachin’s share in the market on Wednesday, which recorded EGP 38.20, with a turnover of EGP 2.2m.

The company indicated that bidders pledged not to lay off the company’s employees within the twelve months following the date of implementation of the offer, except in accordance with the provisions of the Labor Law. In addition, the Board of Directors expected the feasibility of the proposed future development plan by the bidder, stressing the need to adhere to the workers’ rights and benefits in force.

On the two national dye lines, Eagle Chemicals for the manufacture and trade of chemicals, last December, offered the highest price among the offers at EGP 29.5 per share. Pachin’s board of directors agreed to conduct a due diligence examination, then the financial control announced again the amendment of the price of Eagle’s purchase offer to become EGP 37 instead of EGP 35 per share, making it the highest so far from its peers.

On the other hand, Pachin received a third offer from Compass Capital for Financial Investments, which offered the highest price at EGP 30 early last year, and the Board of Directors also allowed her to conduct a due diligence examination.

Source : Zawya