Deal agreed for Egytrans to acquire NOSCO
By Alex Dahm25 April 2023
A deal has been agreed for Egytrans to acquire National Transport and Overseas Services Company (NOSCO), a leading transport specialist for mega-projects in Egypt.
The Egyptian Transport and Commercial Services Company (Egytrans) Group includes specialized transport company ETAL (Egyptian Transportation & Logistics).
“The Board of Directors of Egytrans approved the acquisition deal and unanimously decided to proceed with the required legal steps starting with holding the extraordinary general assembly meeting of the company’s shareholders on 14 May to discuss the terms of the deal and obtain final approval on the deal implementation mechanism,” said Mohamed Gamal Moharam, Egytrans chairman.
“We believe this transaction will be completed smoothly as all parties believe in the potential of this deal and its benefit for the ambitious growth and expansion strategies of both companies, creating sustainable value for our shareholders and increasing long-term profitability,” added Moharam.
Expansion and growth strategy
For his part Abir Leheta, Egytrans CEO, said, “We are in the process of completing a landmark deal that serves Egytrans’ expansion and growth strategy, through integration of the expertise and capabilities of the two companies, especially in the field of project logistics and land transport.
“Through this step, we aim to maintain the leadership position of both companies within the transport and logistics sector and build on it, all while strengthening the executive and operational capabilities of the group. We strive to leverage NOSCO’s capabilities, especially its extensive fleet and technical experience to achieve maximum operational growth and target larger logistics opportunities and projects, in addition to expanding geographically and operationally across local, regional and global markets,” added Leheta.
From NOSCO, major general Mazen Nadim, chairman, commented, “We are looking forward to the developments that such a deal will bring about, in addition to its role in accelerating the expansion and growth plans for both parties. We operate in a rapidly growing industry driven by economies of scale as well as increasing demand. Therefore, NOSCO’s entry into this deal, as one of the largest land transport and specialized mega-project transport providers will support Egytrans in capitalising on large-scale logistics opportunities.”
The transaction would see Egytrans acquire 2,999,971 shares, representing 99.9% of NOSCO’s share capital. “It would be achieved via a share swap of 67,112,933 shares of Egytrans capital by increasing Egytrans’ issued capital at fair value of EGP 2.594 per share. The transaction allocates 67,112,933 shares to NOSCO shareholders,” Egyptrans stated.