menu

Arabian Cement bids for 99.9% stake in ASCOM unit

Maria: the decision of acquisition aims to use the retained profits of USD 200 million that we couldn’t transfer to the mother company.

Graise: our decision to approve the offer relies on the deal value

Arabian Cement Company (ACC) announced that it has submitted an acquisition offer representing 99.9% of one of the companies owned by Asek Company for Mining - Ascom after finalizing financial and legal due diligence review study in the coming three months. Jose Maria Magrina, ACC Chief Executive Officer, added that due to the dollar crisis, the offer aims to use the USD 200 million retained profits the company wasn’t able to transfer to Cementos La Union, the major shareholder of the Arabian Cement Company, represented by the Austrian Arabian ReadyMix Concrete Company. Maria also declared that the company is targeting to create a comprehensive investment system to invest in sectors related to cement industry, as a way to cut the cost of production and raw materials. Maria also commented that Cementos La Union, has no concerns regarding company’s inability to transfer dividends, as it aware of Egypt’s current economic situation. The Arabian Cement company's ownership scheme includes the Arabian ReadyMix Company (60%), Fayek El Bourini (18%), and other shareholders, in addition to traded shares. ACC capital amounts to EGP 757.479 million.

On the other hand Fayez Gress, Chairman and Managing Director at ASEC Company for Mining , which owns 99% of ASCOM carbonate and chemicals Manufacturing’s shares, said that there are several companies interested in acquiring ASCOM including ACC, pointing out that accepting the Company’s offers depend on the deal’s value. He also stated that Akanar Partners acts as the financial advisor to ASCOM in this deal. “Al Mal” has been informed that EFGHermes acts as the financial advisor to ACC in the Deal. Some sources have revealed that ACC’s takeover bid is an initial offer, revealing that its value has not been decided yet. ASEC Company encumbered ASCOM’s assets, and it also mortgaged the calcium carbonate plant including all related facilities in favor of the Ahli United Bank in return for a financing contract worth EUR 10mn in 2007, this mortgage will reduce the deal’s value. Under the contract signed with the bank, ASEC shall not sell, encumber or rent any item of the assets under pledge over financing period without a written approval from the bank. ASCOM operates in manufacturing calcium carbonate; the firm also conducts geological and mining research. ASEC’s ownership scheme includes Citadel Capital SAE ( 54.74% ),Financial Holding International Ltd ( 16.84% ), Jamal El Garhy ( 6.76% ),Ali Ibrahim ( 5.65% ).The Company’s capital amounts EGP 470 mn

Related news

single news description
05 Jan 2019

Youm7.com- ACC installs HOTDISC for Alternative Fuel Use

Read More
single news description
29 Oct 2015

Arabian Cement Company Announces Names of “Khaleeha Suessi” Winners

Read More