Sinai Cement has informed the Cairo and Alexandria Stock Exchange (CASE) that its board of directors (BOD) is currently negotiating the sale of a capital increase stake to Groupe Vicat, a French cement manufacturer.
The proposed transaction would entail a 100 million Egyptian pound ($17.6 million) capital increase to EP 350 million through the issuance of 10 million shares with a par value of EP 10, to be sold to Groupe Vicat at a price of EP 14 per share.
Groupe Vicat would have a 28.57 percent stake in the company and would be represented by three of the board’s eleven members. In a letter to CASE, Sinai Cement confirmed its BOD’s approval of the offer, stating that the current market conditions, where local cement production capacity will exceed demand by 10 million tons by the end of the yea, are forcing the company to increase its capital to allow it to honor its financial commitments to Banque du Caire and other creditors.
The company also stated that it would call on shareholders for an extraordinary general assembly meeting to approve the BOD’s decision. The approval of the National Investment Authority will be required to complete the sale due to legal restrictions on the sale of assets in the Sinai peninsula to foreign entities. — (menareport.com)
© 2003 Mena Report (www.menareport.com )