MBSC and Ireland’s CRH still in sale negotiations
Misr Beni Sueif Cement (MBSC) has informed the Cairo and Alexandria Stock Exchange (CASE), that the company's founders and Misr Bank are still negotiating with Irelands CRH in view of the sale of a stake in the company. The company will inform CASE of the result of the negotiations when any agreement is concluded.
On March 3, MBSC had issued a statement informing CASE that it has received a fax from Ireland's CRH, reconfirming its interest in acquiring a 34 percent stake in the company.
It added that the company's board of directors would study the offer along with representatives from Banque Misr, the company's largest shareholder, and would 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.
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)