Egytrans to establish $200,000 firm, rejects Hassan Allam's offer

The new firm will import used vehicles to be modified for persons with disabilities

  
Image used for illustrative purpose. New vehicles kept in a storage parking lot in Cairo, Egypt, March 7, 2019.

Image used for illustrative purpose. New vehicles kept in a storage parking lot in Cairo, Egypt, March 7, 2019.

REUTERS/Mohamed Abd El Ghany
Cairo –  The board of directors of Egyptian Transport and Commercial Services Co (Egytrans) decided to establish a new company under the name of Egytrans for Logistics Solutions in the Suez Canal Economic Zone (SCZone) to handle storage and logistics activities for imported used cars.

The new firm, which will import used vehicles to be modified for persons with disabilities, will have an authorised capital of $1 million and issued capital of $200,000 distributed over 20,000 shares at a nominal value of $10 apiece, Egytrans said in a bourse disclosure on Thursday.

In addition, the board also decided not to move forward with the offer submitted by H.A. Utilities Holding BV, owned by Hassan Allam Holding and Tanmiya Energy, for business integration. No deal over a fair price has been reached, the company noted.

H.A. Utilities Holding BV estimated the stock of Egytrans at a FV of EGP 12-13 per share for a total market cap of EGP 375 million to EGP 405 million, while the Dutch company’s FV has been estimated at EGP 680 million to EGP 800 million, based on a relative value of 1.63 times to 1.9 times in favour of the Dutch company.

During the first half (H1) of 2021, Egytrans reported net profits of EGP 6.42 million, down from EGP 9.57 million in H1-20.

Source: Mubasher

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