Egypt-headquartered project freight forwarder Egytrans has conditionally agreed a deal with HA Utilities Holding that will see the two companies integrate their businesses.
HA Utilities Holding is an infrastructure investment and development platform – jointly owned by Hassan Allan Holding and Tanmiya Energy – focused on conventional power, renewables, and water-related opportunities to address the growing demand for infrastructure in Egypt and the region.
Egytrans’ board has voted to proceed with the conditional acceptance of the non-binding offer for business integration.
According to Abir Leheta, chairman and ceo of Egytrans, the board “carefully reviewed the proposal and unanimously concluded that the proposal merits further review”. Egytrans will now proceed with the due diligence and valuation process through independent advisors.
She added: “We are operating in an industry where scale is increasingly critical. 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.”
Egytrans has been actively reviewing opportunities with an eye to expanding its geographical footprint using a phased approach. This partnership, according to Leheta, would help to accelerate the process, while aiding the company to capitalise on large-scale logistics opportunities in Egypt.
The transaction subject to the outcome of the due diligence process, shareholder approvals, and the relevant regulatory authorities.