"This deal reflects the qualitative leap in Egypt's logistics sector to make the country a regional hub and a major corridor for global trade," stated Maged Shawky, Chairman of Egytrans. "This is in addition to the ambitious projects in the state's 2030 Sustainable Development Plan to create integrated logistics corridors, which requires the presence of large national entities to contribute to the implementation of this vision. It also aims to achieve sustainable growth in the new entity's performance to create added value for our partners and shareholders, and to seize growth opportunities locally and regionally, reinforcing our leadership as a major player in the transport and logistics industry."
The acquisition of Nosco marks a significant strategic shift
for Egytrans, according to Managing Director Abeer Lehita. The deal strengthens
the company's ability to compete in Egypt's logistics market, which is worth
over EGP 130 billion annually and is growing at a compound annual rate of 9%.
Lehita explained that NOSCO's extensive experience in
project logistics and land transport complements Egytrans's diverse service
offerings. This synergy will enable the company to provide new solutions and
services both domestically and internationally, leading to growth rates that
exceed market averages and improved operational efficiency. The integration goes beyond boosting
financial and operational capacity. Lehita noted that it is also a key step in
the company's commitment to sustainable development goals. By enhancing supply
chain efficiency and adopting eco-friendly practices, the company is
contributing to a greener economy, in line with Egypt's 2030 Vision.
According to Mohamed Nadeem, NOSCO's Managing Director, the
merger of operations and assets has equipped the new entity to offer more
comprehensive and innovative logistics solutions. He noted that the new
operating model ensures optimal use of resources, maintains high service
levels, and boosts technical efficiency while expanding into sustainable,
profitable activities.
Nadeem stressed that the merger is now a reality,
solidifying the company's leading position in the transport and logistics
market. The combined entity now benefits from a wider, more diverse customer
base and greater flexibility to adapt to market changes.
This acquisition marks a major turning point for both Egytrans
and NOSCO. By uniting their capabilities, the new group is poised for
accelerated growth in Egypt's logistics market, which is projected to grow at a
compound annual rate of 9% through 2027.
The deal opens new opportunities for expansion into
international and domestic transport markets, development of warehousing
services, and increased asset efficiency. The core of their strategy is to
maximize operational efficiency and seize local and regional opportunities to
expand into various sectors, positioning the company as a leader in the
logistics industry.
Transaction Overview
The deal was executed through a share swap, where one Egytrans
share was exchanged for 0.0447 of a NOSCO share, resulting in a total capital
increase for Egytrans to approximately EGP 224.9 million. According to the new
ownership structure, the final stakes were 70.17% for Egytrans shareholders and
29.83% for NOSCO shareholders. The transaction was approved based on a fair
value assessment issued by Archer Financial Consulting.
Catalyst Partners S.A.E. was the investment bank and
financial advisor for the deal. Zaki Hashem & Partners served as the legal
advisor, while Al Tamimi & Co. provided legal consultation to meet the
requirements of the Egyptian Competition Authority (ECA). Beltone Securities
Brokerage executed the deal on the EGX.
Abdel Aziz Abdel Nabi, Managing Director of Catalyst Partners,
stated, "We are delighted to be the exclusive investment bank and
financial advisor in the first reverse merger of its kind on the Egyptian
Exchange. This deal is a landmark event in the logistics sector. This
achievement reflects the vitality of the Egyptian capital markets and the
growing interest in innovative structures that open new avenues for growth.
This process strengthens the sector and sets a precedent for future mergers and
acquisitions by combining a listed company with an unlisted one, qualifying the
logistics industry for long-term success and contributing to the development of
the Egyptian economy."
Maged Shawky will continue in his role as Chairman of the Board. Abeer Lehita will take on the position of Managing Director for Shared Services, and Mohamed Nadeem will serve as the Managing Director for Commercial and Operations. This distribution of roles reflects a clear strategic vision to ensure continued growth and enhance the group's capabilities in the next phase.