British glass manufacturer Pilkington has made a second offer for the acquisition of a 90 percent stake in the Egyptian Flat Glass Company (EFGC) with a minimum acquisition request of 70 percent of the shares at a price of 175 Egyptian pounds ($37.5) per share, reported Al-Akhbar. Managed by the National Bank of Egypt (NBE), the tender will remain open for bids until May 27.
Pilkington released its second bid following a joint offer made by the Egypt Kuwaiti Holding Company and the Guardian Middle East & Africa Company, to buy the glass company's shares for EP 173 each.
In October 2001, the British firm, which already holds 10 percent of EFGC shares, made its first bid to purchase 78 percent of the company’s shares, in an offer whose estimated worth was $33 million. Pilkington wanted to purchase 1.35 million shares at a price of 105 Egyptian pounds ($25) per share.
The deal, however, fell through, as EFGC shareholders’ were willing to tender only 21,333 shares, insufficient to give Pilkington the minimum 88 percent controlling interest it had sought.
Seeking to develop a presence in Middle East markets, Pilkington purchased the 10 percent stake in EFGC already in 1997. The group currently intends to expand EFGC’s operations and transform it into a regional exporter serving the Middle East, Africa and Southern Europe, according to Farouk Nasser of International Development Consultants, Pilkington’s local advisor, quoted by the Business Monthly.
Founded in 1995, EFGC now controls the local glass for construction market. It produces float glass for windows and car windshields in its Cairo plant, whose output reaches 400 metric tons of glass per day. Several public sector banks hold nearly 70 percent of the EFGC shares, while the remaining 30 percent is in private hands, including Pilkington and the Saudi-Egyptian Industrial Development Company. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
