Egypt ASEC asks Misr Cement Qena for new company stake

Egypt ASEC asks Misr Cement Qena for new company stake
Published: 13 January 2010

Egypt’s ASEC Cement has invited Misr Cement Qena to take a US$20m stake in a new company building a cement plant in Minya province south of Cairo, it said in a statement on Tuesday.

The new company, al-Arabiya al-Wataniya for Cement, will have US$155m in capital, or E£864m. Al-Arabiya’s cement licence is one of six awarded by Egypt in October 2007 to boost production following an increase in domestic prices.

"This subject has been added to the agenda to be submitted to the board of directors meeting scheduled for Sunday," Misr Cement Qena said in a statement dated Sunday but released by the stock exchange.

ASEC, which has a US$42m stake in al-Arabiya, owns 27.6 percent of Misr Cement Qena.

Al-Arabiya’s 1.6Mta cement factory will cost an estimated US$324m, with 48 percent financed by capital and 52 percent by bank loans.

Arab African Bank agreed in December to raise a $169 million loan for al-Arabiya, with the bank taking up 50 percent and marketing the remainder to other banks. (Writing by Dina Zayed; Editing by Louise Heavens)