CAIRO: ASEC Holding raised its stake in ASEC Cement by 9.48 percent in a deal worth $80 million in cash and shares, according to a statement from the firm.
ASEC Holding is one of Citadel Capital’s Platform Companies operating in the regional cement production, engineering and construction industries.
The holding company will raise its stake in ASEC Cement to 61.04 percent, buying out longtime shareholder Emirates International Investment Company (EIIC).
EIIC is also partner in a number of Citadel Capital’s Opportunity Specific Funds (OSFs).
“This transaction values ASEC Cement at LE 14.68 per share against a par value of LE 10, a fair price for both parties that reflects ASEC Cement’s growth potential as it moves steadily toward controlling over 12 million tons of production capacity per year by 2013, said Citadel Capital Managing Director and Co-Founder Hisham El-Khazindar.
As part of EIIC’s exit of ASEC Cement, Citadel Capital will record revenues of $880,000 as a carried interest on the transaction, the statement read.
The deal will be partly financed through the issue of ASEC Holding shares to EIIC in the amount of $32.5 million via a capital increase at a fair market value of LE 28.50 per share.
EIIC will continue to have exposure to ASEC Cement through its stake in ASEC Holding.
The Emirati firm recently acquired an additional 6 percent of ASEC Holding from Citadel Capital.
Together with EIIC’s original shareholding, the two transactions give the Emirati company a 13.6 percent stake in ASEC Holding. Top shareholders of ASEC Holding presently include Citadel Capital, FHI, EIIC and Cape Collard Investments.
“Our aim in building out ASEC Cement is to create one of the largest and most efficient independent cement producers in the Middle East and Africa, El-Khazindar said.
ASEC Cement is Citadel Capital’s platform investment for cement production in the emerging cement markets of the Middle East and Africa, and will have a combined production capacity of approximately 12 million tons per annum in 2013. -Daily News Egypt
