CAIRO: Egypt's Alexandria Cement said on Tuesday it had almost covered a LE 2.45 billion ($442.2 million) rights issue and expects to sell the remaining shares once the regulator gives the go-ahead. The rights issue is designed to pave the way for the company's main shareholder, Greek cement maker Titan, to sell a 16 percent stake to the International Finance Corporation (IFC) for €80 million ($107.3 million). Titan has been struggling to cope with a shrinking business and to cut debt. Alexandria said in a statement released by the stock exchange that the one-month subscription, which closed on June 20, was 99.43 percent subscribed. The company will use the proceeds of the rights issue to buy 95 percent of another Egyptian cement maker, Beni Suef Cement Co., which is also owned by Titan, it said in a Feb. 28 letter to the exchange. Alexandria Cement will pay Titan LE 3.13 billion for the stake, which will increase Alexandria's total stake in Beni Suef to 99.998 percent. Alex will not pay Titan for the Beni Suef shares in cash, but will book it as an outstanding debt to Titan, it said in the Feb. 28 letter. Titan has agreed sell the 16 percent stake to the IFC once that transaction is completed.
