Cairo, Egypt: Egytrans, a leading provider of transport and logistics solutions, announced that the board of directors, in an extraordinary meeting held yesterday, unanimously voted to proceed with the conditional acceptance of the non-binding offer for business integration presented by HA Utilities Holding BV, a leading Dutch utilities company jointly owned by Hassan Allam Holding and Tanmiya Energy BV.  According to Abir Leheta, Chairman and CEO of Egytrans, the board "carefully reviewed the proposal and unanimously concluded that the proposal merits further review.” 

As a result, Egytrans will proceed with the due diligence and valuation process through independent advisors. In addition, Egytrans Board will be engaging with the management of HA Utilities Holding BV in order to gain more clarity on their strategic vision and value contribution to the proposed partnership, and the potential operational synergies that can be derived. Most importantly, according to Leheta, is “how they see the future role of the combined entity within the overall Transport & Logistics Industry.”

“We are operating in an industry where scale is increasingly critical” said Leheta, speaking on the reasoning behind this decision. “Aside from the evident operational synergies resulting from the vertical integration of our two businesses and the added value for our shareholders, derived from entrance into the thriving business of Clean Energy and Water, this potential partnership aligns with Egytrans’ ambitious strategy of expansion”. Over the last period, Egytrans has been actively reviewing opportunities in the region and specifically in Africa with an eye to expanding its geographical footprint using a phased approach. This partnership, according to Leheta, would help to accelerate the process by building on HAU’s experience and established presence. It would also support Egytrans in capitalizing on large-scale logistics opportunities in Egypt. Likewise, HAU stands to gain significantly from this partnership, which would give them an established foothold in an industry that is set to grow exponentially within the next decade, driven by the increasing demand on logistics and transport. “In fact, our region will play a key role in global logistics and Egypt specifically is in a prime position to capture these opportunities going forward,” said Leheta, adding that “Egytrans already leads the market in Egypt in project logistics and depot solutions and has been gaining significant traction in its other core lines of business”.

Transaction overview

The transaction would see Egytrans acquiring 100 percent of HAU BV in consideration of a debt owed to the seller and settled through the issuance of additional shares in Egytrans at a fair value estimated by an independent financial advisor.

Next steps 

Egytrans has appointed Grant Thornton as an Independent Financial Advisor and Matouk Bassiouny & Hennawy as legal counsel and will appoint an investment banking company as financial advisors for this transaction.

Important Additional Information

The transaction is conditional on the outcome of the due diligence process and the valuation by the appointed independent financial advisory firm and obtaining the approval of the shareholders of Egytrans at an extraordinary shareholders' meeting. The transaction is also conditional on receipt of the relevant regulatory approvals and other customary closing conditions.

Further details on the impact of the acquisition will be communicated subject to the outcome of the above.

The content of this announcement will have no impact on the previously announced outlook for the financial year 2021 as reported in the Earnings Release of Q4 2020 dated March 14th 2021.

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