The Board of Directors of Lafarge S.A has approved the acquisition of OCI Cement Group, the cement unit of Orascom Construction Industries (OCI).
OCI has signed an agreement with Lafarge, pursuant to which OCI has agreed to sell OCI Cement Group to Lafarge for a total consideration of EUR8,800 million. The transaction is expected to be completed during January 2008.
Under the terms of the agreement, OCI will receive a total payment of EUR8,800 million and Lafarge will assume $2,000 million of debt. Out of the total consideration Lafarge will pay EUR6,000 million in cash and the remaining EUR2,800 million will be paid by issuing new shares in Lafarge. As part of the transaction, NNS Holding, a family investment holding company of OCI, will subscribe for 22.5 million new shares in Lafarge at a price of EUR125 per share.
BNP Paribas, Calyon and Morgan Stanley have committed EUR6,000 million debt financing for the acquisition and are acting as financial advisors to Lafarge.
Citigroup, Inc. is acting as financial advisor, and Shalakany and Allen & Overy LLP are acting as legal advisors to OCI in connection with this transaction. Hazem Hassan KPMG is acting as the accounting and tax advisor to OCI.