The Egyptian Transport Services Company (Egytrans) has revealed that HA Utilities Holding BV, the owner of HA Utilities BV, has submitted an initial offer to set up a mechanism for integrating activities between the two companies.
The company clarified that the offer aims to achieve local and regional expansion, through its acquiring 100% of the Dutch company.
Egytrans indicated that the sale consideration is the formation of a debt in favour of HA Utilities Holding BV, to be paid by issuing additional shares in Egytrans.
This would take place according to the fair value determined by an independent financial advisor, after studying all the legal obligations of the parties and the legal and supervisory aspects necessary to complete this deal.
Egytrans stated that the letter estimated the initial value expected based on the information available in the public domain, in the range of EGP 12-13/share, with a total market value in the range of EGP 375m to EGP 405m.
It said that the expected value of the Dutch company, according to the seller’s initial estimates, is estimated at between EGP 680m-EGP 800m, based on 1.63 to 1.9x as a minimum of the relative value of the Dutch company against Egytrans.
The letter presented made it clear that the offer achieves a 20% bonus for Egytrans shareholders over the average share price in the past six months. This is in addition to a partnership that allows Egytrans to expand in various areas of infrastructure, on top of which are the water treatment, desalination, and renewable energy sectors.
These run alongside the company’s expertise and investments in these fields, which supports Egytrans’ position in financial market indices and increases its market value.
The company indicated that it will study the offer after discussion with the board of directors, adding that any decisions are not final. It noted that negotiations may result in reaching an agreement in the acquisition process and the agreement may not be reached.
The Board of Directors at Egytrans decided to convene the Ordinary and Extraordinary General Assembly on 3 February to discuss amending Articles 5 and 22 of the Company’s Articles of Association. These relate to changing the headquarters and increasing the seats of the Board of Directors.
The ordinary general assembly will consider the inclusion of a new member of the company’s board of directors.
Egytrans’ profits decreased by 60% during the first nine months of 2020 to EGP 12.1m, compared to a net profit of EGP 30m in the comparative period of the previous year, taking into account the rights of the minority.
