Cairo – Mubasher: The Egyptian Transport and Commercial Services Co (Egytrans) has received a non-binding offer from Paradigm Logistics Ltd, the majority owner of Ostool for Land Transportation, for business integration between the two companies with the aim of local and regional expansion.

The offer includes the sale of Paradigm’s entire stake of 72.3% in Ostool to Egytrans in consideration of an indebtedness owed to the seller and settled through the issuance of additional shares in Egytrans at a fair value (FV) estimated by an independent financial advisor, the company said in a bourse disclosure on Thursday.

Paradigm Logistics estimated the stock of Egytrans at an initial value of EGP 14.7 for a total market cap of EGP 460 million, while Paradigm’s value has been estimated at EGP 495 million to EGP 640 million, based on a relative value of 1.1 times to 1.4 times in favour of Ostool.

The offer provides the shareholders of Egytrans a premium of 32% above the average share price in the last six months.

Egytrans said that the offer will be studied by the board of directors.

Over the course of 2020, the net profits of Egytrans plummeted by 59% year-on-year (YoY) to EGP 13.06 million, compared to EGP 31.82 million a year earlier.