Irish firm to purchase Misr Beni Suef Cement
Egypt’s Misr Beni Suef Cement is currently in sale negotiations with Ireland’s CRH cement. CRH has submitted a conditional bid to acquire 100 percent of the company’s shares, reported CASE.
Negotiations are based on an enterprise value of 835 million Egyptian pounds ($180 million), and assume 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, Misr Beni Sueif received a EP50 million long-term loan from Bank Misr this past May, bringing the firm’s credit to EP 400 million. The company signed a loan agreement with Bank Misr in October 1999 for an EP 355.2 million loan at a 12 percent interest rate. — (menareport.com)
© 2002 Mena Report (www.menareport.com)