Lafarge and Titan launch a counterbid for Egypt's Amereyah cement Company

01.24.2000
 

The Lafarge Group, in a 50/50 partnership with the Greek-based construction materials group, Titan, has launched a takeover bid for a minimum of 40% and a maximum of 76% of the capital of the Egyptian company, Amereyah Cement Company (ACC). This bid follows that announced on January 18, 2000 by the Egyptian company, Orascom. The bid made by Lafarge and Titan, at the price of EGP75.5 per share, remains valid until February 1, 2000, and represents a 14% improvement on the Orascom offer.
In 1999, the Lafarge/Titan consortium took control of the Beni Suef Cement Company, which operates a 1.4 million tones capacity plant located 120 km from Cairo. Late in the year, Lafarge and Titan announced plans to construct a new production line capable of doubling the plant's capacity.

Amereyah Cement Company, which is sited 50 km west of Alexandria, the country's second largest region after Cairo, produces 2.3 million tones of cement annually, controlling roughly 9% of the domestic market. Inaugurated in 1988, the plant is equipped with two kilns employing very modern technology. The workforce consists of 1,900 people.

The acquisition of ACC would enable Lafarge and Titan to operate two complementary, high performance cement installations in Egypt, with combined annual capacity of 6 million tones following the extension of the Beni Suef site, corresponding to more than 20% of the Egyptian market.

Titan is active in the Mediterranean, the Balkans and the United States, with businesses in cement, ready-mix concrete, aggregates, shipping and trading. The group has been present in the Egyptian cement market since 1979 through joint ventures with local partners.

World leader in construction materials, Lafarge holds top-ranking positions in each of its five Divisions: Cement, Aggregates & Concrete, Roofing, Gypsum and Specialty Products. Active in more than 65 countries, Lafarge advances construction materials through its policies of innovation and respect for the environment.

 

The press release (pdf, 29.8 KB)