Egypt Today: The Financial Regulatory Authority (FRA) agreed to publish the announcement of the compulsory purchase offer submitted by the UAE's National Paints Holdings LLC to acquire the shares of the paints and chemical industries company (Pachin).
The FRA stated, in a filing to the Egyptian Stock Exchange (EGX), that the offer was approved to acquire 24 million shares, or 100 percent of Pachin’s capital, with a minimum execution of 75 percent, at a cash price of LE 34 per share. This means that Pachin was valued at LE 816 million ($26.5 million).
Pachin shares rose by 4.3 percent, to LE 32.32, in the middle of Sunday's trading, after the approval to publish the purchase offer announcement.
The offer requires that Pachin employees not be laid off for a period of 12 months from the date of executing the purchase offer, except in accordance with the Egyptian Labor Law.
In January, the FRA agreed to extend the deadline for the purchase offer submitted by the National Paints Holdings LLC to acquire the shares of the Paints and Chemical Industries Company - Pachin.
It said that it was decided to extend the offer period to another 60 working days, starting from the expiration date of the first period.
The offer includes the intention of the National Paints to acquire all of Pachin’s shares, and to start due diligence procedures.
The company recorded a net profit of LE 19.5 million from the beginning of July until the end of December 2022, compared to losses of LE 12.8 million in the same period of the last fiscal year.
The company's sales rose during the first six months of this year to reach LE 486.39 million at the end of December, compared to LE 427.9 million in the same period of the last fiscal year.
The National Paints Company was established in Jordan in 1969, then transferred its business to the Emirate of Sharjah in the UAE in 1977, where it has one of the largest paint factories in the Middle East with an annual production of approximately 500,000 tons of paint and related products, according to the company's website.