CRH delays Misr Beni Suef Cement acquisition
Ireland’s CRH Cement Company has delayed its acquisition of Egypt’s Misr Beni Suef Cement until November. The company attributed the postponement to a series of European national holidays falling within the month of August, reported CASE.
CRH had submitted a conditional bid to acquire 60 percent of MBSC’s shares in July, with a deadline set for September 30. The Egyptian firm has confirmed that the deal will be finalized before the year’s-end.
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.
CRH insisted that it be granted a five-month negotiation exclusivity period and that the sale would not be concluded before the completion of the company’s production facilities. The sale is pending CRH’s Board of Director’s approval, which is expected by September.
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)