Cairo:HC Securities & Investment announced today that it acted as the sole financial advisor to Middle East Glass Manufacturing Co. (MEG) (MEGM.CA) and the Samaha family on the sale of 74% of the share capital of Medco Plast for Packing and Packaging Systems S.A.E (Medco Plast) to Indorama Ventures Public Company Limited (IVL), one of the world’s leading producers in the intermediate petrochemicals industry, for a value of EGP 843 Million. Additionally, HC Brokerage acted as the sole transaction broker for the buyer and the sellers.
“This is our fifth M&A transaction with MEG, where we have worked hand-in-hand over the years to ensure they meet their long-term objectives,” Mahmoud Selim, Head of Investment Banking at HC Securities & Investment, commented on the transaction.
HC Securities & Investment has previously advised MEG on several transactions, including the acquisition of 60% of Medco Plast in 2010, the acquisition of Wadi Glass in 2014, the private placement of 36% of MEG share capital to Gulf Capital, one of the leading private equity firms in the MENA region in 2014, and the acquisition of Misr Glass Manufacturing Company in 2016.
Medco Plast is the largest manufacturer of recyclable PET preforms, injection molded products, and closures to all the multinational soft drink and water manufacturers operating in Egypt, with a 25% market share. Medco Plast currently has 11 state-of-the-art production lines with a combined annual production capacity of 70,000 metric tons of PET preforms.
“Indorama is a global player that adds to the development of the packaging sector in Egypt, and transactions such as this provide confidence in the Egyptian economy and hopefully contribute to attracting more foreign investments to Egypt,” Selim added.
About HC Securities & Investment
HC Securities & Investment (HC) is a leading investment bank in Egypt and the MENA region. Since its inception in 1996, HC has utilized its relationship-driven insights, local and regional market knowledge, and industry-specific expertise and strong execution capabilities to provide its clients with a wide range of services in investment banking, asset management, securities brokerage, research, custody, private equity, and online trading through its offices in Egypt and the UAE (DIFC). HC Investment Banking has an outstanding track record of advising leading corporates in Egypt and the MENA region on M&A, capital market, and financing transactions in excess of USD5bn. HC Asset Management, winner of the 2018 MENA Fund Manager Awards, now manages 15 mutual funds for commercial banks and portfolios for institutions and sovereign wealth funds with assets under management in excess of EGP7bn. HC Brokerage is ranked among the top brokers in Egypt and provides a wide array of services, including research and online trading to institutional and retail clients
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© Press Release 2018