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Major shareholder offers EGP6/shr to buy remaining shares of Alexandria Portland

Major shareholder offers EGP6/shr to buy remaining shares of Alexandria Portland
Alexandria Portland incurred net losses of EGP 96.58 million in nine months
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ALEX
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Cairo – Mubasher: The board of directors of Alexandria Development Ltd has decided to submit a mandatory tender offer (MTO) to acquire the remaining shares of Alexandria Portland Cement, or 11.07% of the company’s capital shares.

Despite the current challenges facing the cement industry in Egypt and the losses incurred by Alexandria Portland Cement, the board of Alexandria Development decided to submit a cash offer of EGP 6 per share, higher than the average price per share, the company said in a statement to the Egyptian Exchange (EGX) on Monday.

Upon the completion of the acquisition process, Alexandria Development plans to delist the shares of Alexandria Portland Cement from the EGX.

A financial advisor will be hired to finalise the required procedures and submit the offer to the Financial Regulatory Authority (FRA).

Alexandria Portland Cement’s capital stands at EGP 2.88 billion, distributed over 458 million shares, at a nominal value of EGP 6.3 apiece.

In November, the FRA ordered Titan Cement to submit an MTO, following the acquisition of Alexandria Development Ltd, which in turn owns an 88.93% stake in Alexandria Portland Cement.   

It is noteworthy that during the first nine months of 2019, Alexandria Portland Cement incurred net losses of EGP 96.58 million, down from EGP 245.7 million in the same period of 2018.