CRH decreases bid for Misr Beni Sueif Cement to 34 percent
Ireland’s CRH Cement Company has amended its offer to acquire 100 percent of Egypt’s Misr Beni Sueif Cement Company (MBSC) to a 34 percent ownership share. The offer will be based on an enterprise value of 835 million Egyptian pounds ($180.2 million).
According to CRH management the modification of the bid is not related to company activities but is a reflection of the business climate in the Egyptian cement market. This past September, CRH delayed its acquisition of MBSC until November. CRH had submitted a conditional bid to acquire 60 percent of MBSC’s shares in July, with a deadline set for September 30.
Negotiations were based on an enterprise value of 835 million Egyptian pounds ($180 million), and assumed a liability level of EP 535 million, while the equity is valued at EP 20 per share. The company’s equity will be adjusted in agreement with further capital expenditures.
The most privately owned Egyptian cement producer, MBSC recorded an eight percent total asset increase in the first half of the year reaching EP 691 million, up from EP 642 million recorded during the same period last year. — (menareport.com)
© 2002 Mena Report (www.menareport.com)