South Valley Cement has announced an agreement to sell its 47.61 per cent shareholding in Building Materials Industries to Spain’s Instituto Tecnológico de Informática (ITI) for EGP584m (US$12m), priced at EGP two per share, according to a disclosure to the Egyptian Exchange.
The EGX-listed company holds 292.34 million shares out of the subsidiary’s total 614 million shares. A fair value study conducted on Building Materials Industries concluded a price of EGP1.25 per share (US$0.02/share), compared with a negative book value of EGP1.26.
The sale represents a significant premium to the unit’s assessed fair value, providing South Valley Cement with a capital boost as it continues to navigate a challenging operating environment.
