Ciments Francais, Italcementi Group sub-holding for international activities, along with a consortium of local and international investors have reached an agreement with the Egyptian government. Under the terms of the agreement and in accordance with the Egyptian privatisation laws, Ciment Francais and the investors consortium have committed to purchase a 33.4% stake in Suez Cement, Egypt’s leading cement producer.
The transaction will enable Ciments Francaise to raise its shareholding in Suez Cement from 39.9% to more than 54% this will make Ciments Francais the leading shareholder of Suez Cement.
The offer price which includes a majority premium has been set to E£97/share. The transaction total consideration amounts to approximately US$360m.
In October 2001 during the first phase of privatisation, Ciments Francais had become a strategic partner of Suez Cement through the purchase of 25 per cent of its share capital. After the recent acquisitions and once this transaction is completed, Ciments Francais’ total investment will have reached around EUR40m.
Suez Cement entry in the group’s perimeter will enable Ciments Francais and Italcementi Group to improve their leadership in the whole Mediterrean rim.
Suez Cement operates three production facilities with a total capacity of around 8Mta both for domestic markets and exports.