EGYTRANS' capital increased to 22,409 million pounds after completing the share swap deal
The deal opens up expansion horizons in the field of transportation and logistics services and solutions
Expected growth rates exceed market averages, supported by operational consolidation and strategic integration
. Maged Shawqi continues as Chairman of the Board of Directors, and Al-Hayta Director and Mohamed Nadim continue as Managing Directors
Egypt, Cairo September 11, 2020 EGYTRANS, the leader in transportation and logistics solutions, announced the completion of the acquisition deal to acquire 99.9% of the shares of the National Transport and High Seas Services Company (NOSCO) on the Egyptian Stock Exchange, through a share swap. According to the deal, EGYTRANS’s capital will rise to 224.9 million pounds, in a step that represents a milestone in the two companies’ journey and strengthens their position in the local market and supports the regional expansion strategy. By achieving integration and increasing operational capabilities to take advantage of the growing growth opportunities in the transportation and logistics sector.
Maged Shawky, Chairman of the Board of Directors of EGYTRANS, said that this deal is a reflection of the qualitative shift witnessed by the logistics sector in Egypt to make Egypt a regional center, a link and a major corridor for the global trade movement, in addition to the ambitious projects in the state’s plan for sustainable development 2030 by establishing integrated logistics corridors, which requires the presence of large national entities that contribute to the implementation of this vision, in addition to achieving sustainable growth in the performance of the new entity to achieve added value for our companies and shareholders and seize Growth opportunities locally and regionally, enhancing our leadership as one of the major players in the transportation and logistics industry.”
Engineer Abeer Laheta, Managing Director of EGYTRANS, also confirmed that the acquisition of Nosco represents an unprecedented strategic transformation for the company, explaining that the acquisition enhances the group’s ability to compete in the logistics services market, whose size exceeds 130 billion pounds annually and is witnessing a compound annual growth rate of up to 9%. She added that Nosco has long experience in project logistics and land transportation, which constitutes a factor in our integration with the EGYTRANS platform of various services, allowing the provision of new solutions and services within Egypt.
She pointed out that this integration is not only limited to maximizing operational and financial capabilities, but also represents a pivotal step in the group’s commitment to achieving sustainable development goals, by enhancing the efficiency of supply chains and adopting environmentally friendly practices that contribute to building a green economy in line with Egypt’s Vision 2030.
For his part, Engineer Mohamed Nadim, Managing Director of Nosco, explained that the new entity after the acquisition has become equipped to provide more comprehensive and innovative logistical solutions thanks to the integrated integration of operations and assets, indicating that the new operating model ensures the optimal use of resources and maintaining high levels of service, while enhancing technical efficiency and expanding activities with sustainable profitability. He stressed that this merger is no longer a future plan, but rather a reality that strengthens the company's leadership position within the transportation and logistics market, as it now has a broader and more diverse base of customers and more flexible mechanisms to adapt to market changes.
This acquisition represents a strategic turning point for EGYTRANS and NOSCO, as it opens new horizons for expansion across international and local transportation markets, developing warehousing services, and increasing asset efficiency. By unifying capabilities, the group is laying a solid foundation for accelerated growth in the Egyptian logistics market, which is witnessing a compound annual growth rate of 9% until 2027, while its strategy is based on maximizing the efficiency of operations and seizing local and regional opportunities to expand the scope of its business in different sectors, thus putting itself on a clear path in the logistics industry locally and regionally.
Transaction overview
The deal was completed through a share exchange, whereby one share of EGYTRANS' capital was exchanged for 447,000 shares of TOSCO's capital, which resulted in an increase of EGYTRANS's total capital to approximately 224.9 million pounds. According to the new ownership structure, the final shares amounted to 70,017% for EGYTRANS shareholders, compared to 29,083% for Nosco shareholders. The deal was approved based on the fair evaluation issued by Archer Financial Consulting.
At the level of advisors, Catalyst Partners LLC was the investment bank and financial advisor for the deal, and Zaki Hashem & Partners served as the legal advisor for the deal, and Al Tamimi Law Office provided consultations.
To fulfill the requirements of the Competition Protection Agency and prevent monopolistic practices, Beltone Securities Trading Company implemented the deal on the Egyptian Stock Exchange.
For his part, Mr. Abdel Aziz Abdel Naby, Managing Director of Catalyst Partners, said: “We are pleased to be the investment bank and exclusive financial advisor in the first reverse merger of its kind on the Egyptian Stock Exchange, in a deal that is a milestone in the logistics services sector.” This achievement reflects the vitality of the Egyptian financial markets and the growing interest in innovative structures that open new horizons for growth. This process enhances the strength of the sector and sets a precedent for future mergers and acquisitions by combining a listed company with an unlisted company, and qualifies the logistics industry to achieve long-term success that contributes to the development of the Egyptian economy.”
As for the company’s new administrative structure, Mr. Maged Shawqi is scheduled to continue his duties as Chairman of the Board of Directors, while Engineer Abeer Lahita will assume the position of Managing Director of Shared Services, and Engineer Mohamed Nadim will assume the position of Managing Director of Commercial Affairs and Operations, in a distribution of roles that reflects a clear strategic vision to ensure continued growth and enhance the group’s capabilities in the next stage.
