Calyon Bank Egypt: the financial advisor of Suez Cement Company in the acquisition of ASEC Cement

Calyon Bank Egypt: the financial advisor of Suez Cement Company in the acquisition of ASEC Cement
Published: 24 August 2005

Calyon Bank Egypt has recently announced being the financial advisor of Suez Cement Company in one of the largest tender offers made on the Cairo Stock Exchange. 
 
The acquisition of ASEC Cement, Egypt’s fourth cement producer by Suez Cement Company, Egypt’s top cement producer.
 
The acquisition of ASEC Cement is carried out by Suez Cement Company, of which the Italcementi Group acquired the control at the start of this year through Ciments Français, and in cooperation with other local and international partners. ASEC Cement is controlled by the ASEC Group, a leading integrated Egyptian group of companies specialized in cement engineering, cement production and industrial contracting. The ASEC Group is controlled by Citadel Capital, a leading Egyptian private equity firm.
 
A sale and purchase agreement was signed between Suez Cement Company and the Citadel group, related to the 68,7 per cent of ASEC Cement owned by the latter. Including a cash investment for Suez Cement Company of an amount of EGP 3422m and the net debt of ASEC Cement estimated to be EGP 1178m, the transaction raises EGP 4.6bn.
 
The Suez Cement Company was financially advised by Calyon Bank Egypt, the leading corporate and investment bank founded in April 2005 following the merger of Crédit Agricole Indosuez Bank (EGYPT) SAE and Crédit Lyonnais ’Egypt Branch’, while ASEC was advised on the transaction by EFG-Hermes. Shalakany Law Office, acted as legal counsel on the transaction.
 
Adrien Pharès, the Managing Director of Calyon Bank Egypt has commented:
"Calyon Bank Egypt is very proud to be the advisor of Suez Cement Company in this huge transaction, proving to be a full Corporate and Investment Bank in the Egyptian market place."
 
The new entity Calyon Bank Egypt SAE has emerged on April 1, 2005 following the merger of Crédit Agricole Indosuez (Egypt) SAE and Crédit Lyonnais, Egypt Branch. This operation follows the worldwide merger of Crédit Agricole Indosuez and Crédit Lyonnais’s Corporate and Investment Banking Division, founding Calyon in May 2004, the Corporate and Investment Banking arm of Crédit Agricole Group.