CAIRO: Egypt s Paints and Chemical Industries Co. (Pachin) is in talks with a potential buyer for 100 percent of its shares, the stock exchange said on Monday.
The Capital Markets Authority received a letter from Pachin which said the buyer would make an offer for the stock after concluding a due diligence study, the exchange said in a statement.
The paint company signed a confidentiality and non-competition agreement with the buyer on April 12, it added.
Pachin declined immediate comment on details of the bid.
Egyptian daily Al-Alam Al-Youm on Monday quoted a senior official from Egypt s Chemical Holding Industries Co. (CIHC) who said three Egyptian and Gulf companies were seeking to acquire Pachin s shares for 53 pounds per share ($9.31).
CIHC, an affiliate of the Ministry of Investment, is the major shareholder in Pachin with a 39.75 percent stake, according to Pachin s website.
Egypt s Middle East for Paint – Egypt Co. in March offered to buy out Pachin for 53 pounds per share.
Stock in Pachin, which reported a 25 percent rise in net profit to 58.2 million pounds for the six months to December 2006, closed on Monday up 7.2 percent to 56.89 pounds.
