Vassiliko Cement Works Public Company Ltd announced that the Board of Directors will meet on Tuesday, November 13, 2007 to decide when to call an Extraordinary General Meeting and proposal to the EGM for the increase in the Company’s authorised share capital and the issue of new shares to The Cyprus Cement Public Company Ltd (CCC) for the enforcement of the agreement dated March 9, 2007, which was signed between the Company and CCC for the management, exploitation and sale of cement of the two companies, as well as the activities in the sector of quarry material and ready-made concrete. The decisions of the Board of Directors will be announced prior to the CSE session on November 14, 2007.
On 9 March 2007, VCW and CCC signed an agreement under which the two companies would commonly manage the operations regarding the production and sale of cement, as well as the operations of the quarry and ready mix business lines. The Company will issue (subject to EGM approval) 18,199,794 shares to CCC at the weighted average of VCW’s closing price during the 3 months that preceded the date of the agreement. The shares will represent c. 25% of the issued share capital of VCW. In the event that the EGM approves the share capital increase and thus the Public Offer to acquire CCC is finalised, then the combined cement production capacity would increase to c. 2m tones, which would eventually give a strong boost to the Company’s top line and bottom line especially once all the price restrictions imposed by the Commission for the Protection of Competition are lifted in April 2009.