For cement FRENCH cement company Ciments Français has offered to buy the 65.9 per cent that it does not already own of Egypt's largest cement producer Suez Cement for $540 million. The bid of the company, a unit of Italian building materials group Italcementi, comprises a LE80.05 Egyptian pounds per Suez Cement share, representing a premium of 12 per cent over the average November share price. Cement shareholders will have 10 days as of today to accept the offer. "If successful, the offer would represent the biggest privatisation operation realised in Egypt for a long time," the chief executive of Ciments Français, Yves Rene Nanot, said. According to a statement issued by the French company, a successful outcome of the operation will allow to further integrate the structure of Suez Cement into the group's industrial framework. Suez Cement produces 4.2 million tonnes of cement annually. The French company initially bought a 25 per cent stake in Suez Cement in October 2001 and has increased its stake to 34.1 per cent since. "With this transaction the group is continuing its strategy of reinforcing its presence in emerging markets by increasing production capacity in countries with high growth potential," Ciments Français said. The Egyptian cement sector is currently 30 per cent dominated by foreign cement companies which entered the market in the mid- and late 1990s through state-owned sell-offs. The list of foreign companies working in Egypt includes British Blue Circle, France's Lafarge and Mexico's Cemex. The move comes amid a revival in local cement prices ranging between LE240 and LE275 per tonne compared to LE120 in 2002. EFG-Hermes Investment Banking is advising CF in the transaction. No decree 506 THE ADMINISTRATIVE court has cancelled decree 506 passed last year obliging exporters to relinquish 75 per cent of their export revenues in hard currency to the Central Bank of Egypt at official bank rates. Issued in early 2003, the decree was one of the measures the government of former Prime Minister Atef Ebeid introduced to help halt the decrease in the Egyptian pound exchange rate due to the scarcity of the dollar. The court said the decree violates the principles of freedom of hard currency acquisition included in the Central Bank of Egypt law introduced last year. Indian yarn AS PART of a broader plan to promote Indian textiles, the Indian Embassy in Cairo, together with the Indian Synthetic and Rayon Textiles Export Promotion Council (SRTEPC), organised an Indian yarn and textile show in Cairo. Around 27 leading Indian companies participated in the two-day event displaying a wide range of top quality synthetic, blended yarn and textiles. "Establishing mutually beneficial business ties with Egyptian companies and exploring possibilities of joint ventures was the aim of the exhibition," Ragendra Rathore, the Indian ambassador to Cairo, said during the opening of the show. Rathore said the textile show provided an excellent opportunity for Indian and Egyptian businessmen to establish long-term relationships. STEPC chairman Rakesh Mehra said the Indian textile industry had a significant presence in global markets. India is the world's third largest producer of cotton and the fifth largest producer of synthetic fibre and yarn. Together THE AMERICAN International Group (AIG) Insurance Company has purchased 90 per cent of the Pharaonic Insurance Company. The new entity will be officially known as AIG Egypt Insurance Company. "Egypt is one of the high- potential markets due to its position in the region and its large population base," Charles Bouloux, president of the Middle East, Mediterranean and South Asia Division of AIG, said. AIG is a leading international insurance and financial services organisation with operations in more than 130 countries. Mujib Khan, vice chairman and managing director of AIG Egypt, said the company was offering new services for the Egyptian market, including commercial and personal lines, energy, marine, accident and health, and international travel insurance.
