CAIRO - 7 August 2022: The Paints and Chemical Industries Company (Pachin) announced Sunday that it had received a letter from the International Company for Building Materials and Chemicals (Sipes) declaring its intention to submit a non-binding offer to purchase the shares of Pachin Company.
The non-binding offer is to acquire 100 percent of the issued capital of the company, minus the number of shares needed for the company to continue to be listed on the Egyptian Stock Exchange (EGX), with a minimum of 60 percent of the company's issued capital for implementation.
Pachin elaborated in a filing to the EGX, that this is at an initial price ranging from LE 17.5 to LE 18.5 per share, provided that the International Company for Building Materials and Chemicals (Sipes) begins the procedures for due diligence on Pachin Company to determine the final purchase price.
Earlier today, the Paints and Chemical Industries Company - Pachin, denied in a statement to the EGX, receiving a non-binding purchase offer from the International Company for Building Materials and Chemicals "Sipes", to acquire Pachin's shares.
Last July, the Board of Directors of the Paints and Chemical Industries Company - Pachin discussed the non-binding purchase offer submitted by Saipad Industrial Investment Company to acquire Pachin shares.
The company said that the board of directors decided that the value of the offer was not commensurate with the real value of the company and its assetsز
The company called on the bidder to reconsider the bid, to reach a price commensurate with the real and fair value of the company.
Saipad's offer includes acquiring 90 percent of Pachin's capital, with a minimum execution rate of 51 percent, at an initial price ranging between LE 16 to LE 16.5 per share, provided that Saipad begins the procedures for due diligence on Pachin Company to determine the final purchase price.
Pachin's capital is about LE 240 million pounds, divided into 24 million shares, with a nominal value of LE 10 per share.
The paints and chemical industries - Pachin, recorded net losses of LE 856.16 thousand from the beginning of July until the end of last March, compared to profits of LE 50.13 million during the same period last fiscal year.
The company's sales rose during the nine months, recording LE 663.29 million at the end of March, compared to LE 639.34 million during the same period last fiscal year.
As for standalone results, the independent company turned to losses during the nine months to incur LE 1.03 million, compared to profits of LE 2.86 million during the same period of the previous fiscal year.