HC Securities acts as sole financial advisor on sale of 74% of Medco Plast

CAIRO – 15 November 2018: HC Securities & Investment acted as the sole financial advisor to Middle East Glass Manufacturing Co. (MEG) (MEGM.CA) and the Samaha family on the sale of 74 percent of the share capital of Medco Plast for Packing and Packaging Systems (Medco Plast) to Indorama Ventures Public Company Limited (IVL), for a value of LE 843 million.

HC added in a statement that 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,” Head of Investment Banking at HC Securities & Investment, Mahmoud Selim said.

The statement referred that the company has previously advised MEG on several transactions, including the acquisition of 60 percent of Medco Plast in 2010, the acquisition of Wadi Glass in 2014, the private placement of 36 percent of MEG share capital to Gulf Capital, and the acquisition of Misr Glass Manufacturing Company in 2016.

“Indorama is a global player that adds to the development of the packaging sector in Egypt. Transactions like this one provide confidence in the Egyptian economy and hopefully contribute to attracting more foreign investments to Egypt,” Selim added.

According to the statement, Medco Plast is a 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 percent 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.