Sidi Kerir Petrochemicals aims to complete acquisition of Ethydco this quarter

Sidi Kerir Petrochemicals Company (SIDPEC) aims to complete the full acquisition of the Egyptian Ethylene and Derivatives Company (Ethydco) during the current quarter, sources told Daily News Egypt.

SIDPEC stated that its fair value amounted to about EGP 23.13bn in December 2022, distributed over 756 million shares, bringing the average fair value per share to EGP 30.6, according to the report of the financial advisor prepared by Baker Tilly.

It added that the fair value of Ethydco amounted to $1.08bn in the same period, distributed over 13.86 million shares, bringing the average fair value per share to $78.32.

The US dollar exchange rate was calculated at EGP 30.9, so that the fair value of Ethydco in December was about EGP 33.54bn.

The sources added that Ethydco has already joined the pre-IPO fund of the Sovereign Fund of Egypt (TSFE), and that the acquisition will not affect the share that was added to the fund with the aim of selling it to a strategic investor.

The sources pointed out that a number of foreign funds showed interest in purchasing shares in the company during the promotional tour that the TSFE held in several Gulf countries last month, and that the sale of a share of the company will take place after the completion of the acquisition.

The sources added that the completion of the merger depends on obtaining the approval of Ethydco shareholders.