Alexandria Cement to launch $442m rights issue

01 May 2010

(MENAFN) Egypt’s Alexandria Cement said that it has received the go-ahead for a $442.1 million rights issue scheduled to begin May 19, Reuters reported.

The transaction will pave the way for Alexandria Cement’s main shareholder, Greek cement maker Titan, to sell a 16 percent stake in Alexandria to the International Finance Corporation (IFC) for $106.6 million.

Alex will use the proceeds of the rights issue to buy 95 per cent of another Egyptian cement maker, Beni Suef Cement Co., which is also owned by Titan, it said in a February 28 letter to the exchange.

Alexandria Cement will pay Titan $563 million for the stake, which will increase Alexandria’s total stake in Beni Suef to 99.998 percent.

The company will not pay Titan for the Beni Suef shares in cash, but will book it as an outstanding debt to Titan, it said in aFebruary 28 letter.

Titan has agreed sell the 16 percent stake to the IFC once that transaction is completed. Titan expects to complete the IFC sale before the end of June, it said last month.

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