CRH reconfirms purchasing interest in MSBC
Egypt’s Misr Beni Sueif Cement (MSBC) has received a fax from Ireland's CRH Cement, reconfirming its interest in acquiring a 34 percent stake in the company reported the Cairo and Alexandria Stock Exchange (CASE).
The company's board of directors has agreed to study the offer along with representatives from Banque Misr, the company's largest shareholder. MSBC will inform shareholders of the result of the study within one month.
This past September, CRH delayed its acquisition of MBSC. 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 was valued at EP 20 per share. The company’s equity would 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 was pending CRH’s Board of Director’s approval, which was planned for September 2002.
In November 2002, the MSBC amended its offer to acquire only a 34 percent ownership share. The new offer was based on an enterprise value of $180.2 million. The company’s management stated that the amendment was a reflection of the business climate in the Egyptian cement market. — (menareport.com)
© 2003 Mena Report (www.menareport.com)