Sidpec, Ethydco merger to finalize next month
Updated 9/24/2024 11:14:00 AM
Arab Finance: The all-share merger between state-owned Egyptian Ethylene and Derivatives Company (Ethydco) and Sidi Kerir Petrochemicals (Sidpec) is set to be completed next month, Al Borsa News reported citing unnamed sources familiar with the matter.
The process is currently pending approval from the Financial Regulatory Authority (FRA) regarding the exchange rate between the two companies, which Baker Tilly Financial Consulting has reassessed.
The FRA will grant the approval within a week, enabling the merger to proceed before the end of October, the sources noted.
In July 2023, Sidpec’s board approved the merger after Baker Tilly's valuations estimated Ethydco’s value at EGP 33.5 billion and Sidpec’s at approximately EGP 23.1 billion.
However, the merger was paused when Abu Dhabi’s sovereign wealth fund ADQ acquired 30% of Ethydco, 35% of Egyptian Linear Alkyl Benzene (Elab), and 25% of the Egyptian Drilling Company (EDC) for $800 million in October.
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