Ciments Français, at the end of the due diligence period envisaged in the agreement announced on 13 June, has finalised an agreement for the purchase of 68.7% stake in ASEC Cement Company, the fifth largest cement company listed on the Cairo and Alexandria Stock Exchange, at a price of 29 EGP per share.
The acquisition of ASEC Cement will be completed through Suez Cement Company, the Egyptian company, of which Ciments Français acquired the control at the start of this year. The transaction provides that Suez Cement will launch a public tender offer within the first fortnight of August for the whole share capital of ASEC Cement at the price of 29 EGP per share, in line with its current share price. The company’s capitalization is approximately US$590m.
The acquisition, which will be carried out in cooperation with other local and international partners - including the Italian company Cementi Rossi - means for Ciments Français an investment of approximately US$145m. The total value of ASEC Cement is around US$800m, which corresponds to around 8.3 times the estimated EBITDA for the current year.